In a bid to improve the tax collections to rev-up the revenue of cash-strapped Punjab, the excise and taxation department of the state is set to meet the shortage of tax inspectors for better tax compliance. The department is short of 165 inspectors that have been affecting the working for quite some time and to solve the problem a recruitment drive will be launched shortly.
Punjab excise and taxation commissioner, A Venu Prasad when contacted, told FE , ?Currently the department has a strength of 300 inspectors out of which 100 inspectors are deputed for excise duty collection, another 100 for VAT collection while remaining for other services. We are short of 165 inspectors and we will start the process of recruitment very soon to fill the gap. After meeting out the shortage we will be better in plugging evasion of taxes?.
However, the department has recorded the unprecedented buoyancy in the VAT and CST collections and is confident to maintain the momentum in the year 2008-09. In the year 2006-07 the total collection was recorded at Rs 5136 crore which reached at Rs 5871 crore in the year 2007-08. The department has projected to achieve the target of Rs 7100 crore in the year 2008-09 recording the growth of 25%. Excise collection is expected to stand at Rs 1740 crore in the year 2008-09 like in the previous year.
Citing the various reason for better tax collections, Prasad said, “We started registering the dealers last year and brought 15,000 dealers under registration network which improved the collections.?
Every dealer who has become liable to pay tax by virtue of his turnover exceeding the taxable limit, is required to get himself registered with the department of excise & taxation. Besides with the better implementation of Input Tax credit system which is vital to the concept of Value Added Tax system helped in improving the tax collections. ITC is a tax that a taxable person has paid on his business purchases and it is a major check on leakage of tax”.
In another move to perk up tax collection and to reduce the congestion at information collections centres the department has decided to upgrade all the 36 check-posts in the state. Though these barriers are working round the clock but they have failed to cater to the rush of vehicles transporting goods from other states to Punjab. Due to inadequate staff posted at the sales tax barriers, truck drivers have to wait for days together to get their documents checked. Punjab infrastructure development board is the nodal agency to carry out the project of integrated check-post for which the cost is estimated at around Rs 4 crore. This initiative is expected to see completion within two years.