Pay taxes, CM tells traders

Chief Minister Arvind Kejriwal’s opening speech on Saturday reflected the weak financial position of the city as he exhorted traders to deposit taxes in large numbers as “we need money for governance”.

“Please pay your tax in large numbers,” Kejriwal said, promising traders that they will not be bothered by inspectors from the government, but in return they will have to file their tax in large numbers.

The Chief Minister assured traders that he will ensure that every penny that they pay as tax will be used for constructing colleges, hospitals, schools and giving relief in power and water bills.

“We will ensure that not a rupee of the tax is lost to corruption,” he said.Kejriwal’s desperation for generating more revenue is linked to his government’s poll promise to slash power bills by half if consumption is up to 400 units in a month. 

A proposal prepared by the Delhi government for implementing the plan will require a subsidy burden on the government of Rs 1,400 crore.

The Kejriwal government needs resources for meeting its promise of slashing power bills, especially in the backdrop of private power distribution companies’ petition to the power regulator to hike tariff by 21 per cent. 

The total tax revenue target is Rs 31,571 crore for the current financial year. While the Commissioner (Trade and Tax) Sanjiv Khirwar claimed in December that collections were going strong, partially over the last year’s corresponding figure, sources said the last three months of the financial year are always crucial for meeting targets.
As on December 10, 2014, the annual progressive collection of tax was Rs 11,992 crores, a 6 per cent rise over the collection till the same date in the previous financial year. 

Sources in the Delhi government’s revenue department said the receipts have been on the lower side in the area of property registration fee.

Former principal secretary (revenue) S N Sahai had admitted in December that revenue collections from property registrations had fallen drastically due to a slump in the real estate market.

The luxury tax target for the current financial year stands at Rs 400 crore, while collections by December 25, 2014, it was Rs 219 crore. The fall in revenue collection was visible from the first month of the financial year itself. The total tax revenue in April 2014 was recorded at Rs 1,401 crore.

Lieutenant Governor Najeeb Jung had repeatedly pulled up Delhi government officials for lagging behind in revenue generation. Kejriwal’s campaign during the elections was also focused at winning over traders by assuring them less harassment by raiding teams.

His claims that he made record collection of VAT during his 49-day stint was refuted by his BJP rivals. The AAP’s claim of collecting Rs 5,666 crore as VAT was false, Delhi BJP chief Satish Upadhyay had alleged.