While suggesting effective measures to stop tax evasion, Chief Minister Pushkar Singh Dhami has entrusted the responsibility of stopping tax evasion of a minimum of Rs 1000 crore and a maximum of Rs 3000 crore to the State Tax Department. Instructions were given to the Excise Department that the operators of liquor shops should deposit the amount as per the target, otherwise the shops will not be allotted to them next year.

Ravindra Barthwal, Dehradun. Chief Minister Pushkar Singh Dhami is not only taking an interest in the proper utilization of the budget and increasing the revenue income, he is also advising the departments to stop tax evasion and suggesting a formula to increase the income. Important departments like state tax and excise achieved revenue more than the target in the last financial year.

The confidence of these departments in meeting the targets set for the current financial year is wavering. Suggesting effective measures to stop tax evasion, the Chief Minister has entrusted the responsibility of stopping tax evasion of a minimum of Rs 1000 crore and a maximum of Rs 3000 crore to the State Tax Department.

CM’s eye on increasing revenue income

At the same time, instructions were given to the Excise Department that the operators of liquor shops should deposit the amount as per the target, otherwise the shops will not be allotted to them next year. Chief Minister Dhami himself is keeping an eye on the front of increasing revenue income.

As a result, the government received Rs 7341 crore from SGST in the last financial year 2022-23, much more than the target of getting revenue of Rs 6200 crore. The state tax department collected an amount of Rs 2555 crore as VAT, surpassing the non-GST target of Rs 2204 crore.

Based on this performance, the target of revenue collection from SGST for the financial year 2023-24 has been set at Rs 8814 crore. As compared to the target, Rs 5824 crore has been achieved so far. The department has received Rs 1674 crore from VAT against the tax revenue target of Rs 2603 crore.

Strengthen the notification system to prevent tax evasion

Now the challenge is to complete the remaining target in three months. In view of the upcoming Lok Sabha elections in the month of March, the Model Code of Conduct may be implemented. The Chief Minister patted the tax department for the steps taken towards revenue generation but asked it to stop tax evasion to achieve the remaining target of about Rs 3000 crore.

Additional Secretary Finance C Ravi Shankar said that the Chief Minister asked the State Tax Department to strengthen the departmental information system and audit wing and take the help of Artificial Intelligence to prevent tax evasion. The Transport Department has been asked to make effective use of the ANPR system installed on the roads, so that tax evasion can be curbed.

The excise revenue target will not be reduced

The Excise Department achieved Rs 3526 crore against the target of Rs 3500 crore in the financial year 2022-23. A target of Rs 4000 crore has been set for the department in the current financial year. The department has recovered Rs 2953 crore in nine months.

Describing the target of Rs 4000 crore as high, the Excise Commissioner expressed the possibility of achieving only Rs 3800 crore. The Chief Minister has made it clear that the target has been decided on the recommendation of the department. Therefore, it will not be reduced under any circumstances.

Excise policy in the next cabinet meeting

The Chief Minister also showed the mirror to the department. He said that information about the sale of illegal liquor has come to light in remote areas of the state, including Dharchula and Munsiyari. Also, the department’s attention was drawn to the illegal sale of liquor in Rishikesh and surrounding restricted areas.

The department should stop this effectively. He has also given instructions to present the excise policy for the financial year 2024-25 in the next cabinet meeting. Finance Additional Secretary C Ravi Shankar said that as per the instructions of the Chief Minister, the departments will have to sharpen their revenue generation strategy.