Tax collection up as State economy revives

Tax collection up as State economy revives

At a review meeting of the Department of Finance chaired by Chief Minister B S  Yeddyurappa on Tuesday, Principal Secretary L V Nagarajan is learnt to have stated that  Rs 2,933 crore has been collected in the form of taxes in April, the first month of 2010-11 fiscal.
Tax collection in the first month has been very encouraging and that the department will easily reach its target of Rs 36,228 crore (State’s own taxes) if the trend continues, the Principal Secretary is learnt to have said.

In 2009-10, the State Government fell short of Rs 3,383 crore against the budgetary target, forcing it to borrow money from the open market to meet the expenditure. Similar was the scene in 2008-09. The economy is showing signs of recovery in the last three months. A clear picture will emerge by June this year, the official told the CM.

This apart, Commercial Taxes officials are learnt to have told Yeddyurappa that the tax payment will be made completely online by the end of this year.

Life-time tax

The Transport department informed the Chief Minister that they proposed to collect life-time motor vehicle tax on construction equipment like earth-movers, tippers and cranes. Around 10 per cent of the cost of equipment will be imposed as the tax. Presently, the department is collecting the tax from the equipment owners on a quarterly basis.