The coffers of the BJP-ruled Assam government, which is offering various incentives to encourage people to go for digital transactions, have been hit hard by demonetisation.
The State Government is anticipating a loss of over Rs 1100 crore at the end of the current financial year. The loss is attributed to dip in sales of goods in the post-demonetization period. A loss of Rs 1,000 crore alone is being anticipated in collection of commercial taxes, while another Rs 100 crore loss is projected in excise duty collection.
Government to target tax evaders now
To reduce the adverse impact of demonetization, the state government will now focus on tax evaders. The government will sign an MoU with Central Board of Direct Taxes (CBDT) for sharing information or data on central excise, custom duty and income tax collected for preventing leakages in tax collection on the lines of Maharashtra for collective enforcement.
Chief Minister Sarbananda Sonowal, while chairing the apex committee meeting of Restructuring Systems and Technology to Augment Resources for Transformed Assam (ReSTART Assam) here on Tuesday, instructed all revenue earning departments to come up with innovative methods to make up for this anticipated loss.
The transport department, which indicated a revenue loss of about 10-12% due to demonetization, believes it can overcome the challenge and meet the targets by collecting additional funds by auctioning fancy registration numbers.
The State’s own revenue collection comes from commercial taxes, State excise duty, motor vehicle tax, land revenue, stamp duty and registration which has not been satisfactory. This has led to increased dependence of the state on central funding. In 2015-16, the ratio of central transfer to state’s total revenue was 70.71%.