Jammu, March 19 (Scoop News) – J&K Minister for Finance, Abdul Rahim Rather, while asserting that Jammu and Kashmir will be the best financially managed State of the country within a year.
Replying to the debate, on the Demand of Grants for the departments under his charge for the financial year 2010-11, in the Legislative Assembly on Friday, Mr. Rather said that the element of accountability and transparency at various levels in the finance and its allied departments have started showing discernible results. He said that reforms in the department have resulted in manifold increase in the tax revenues last year, as compared to the previous years. He said the 13th Finance Commission Award has appreciated the State for considerable improvement in the own tax collection effort.
Rather dwelt in detail on the funds flow to the State and referred to the three-way mechanism of resource mobilization for running the affairs of the State, which include, mobilizing internal resources in the form of revenue receipts and other local taxes, awards from the Finance Commission and share in Central Taxes and annual plan allocations from the Planning Commission. He said the State gets grants from the Centre under Article-275 of the Indian Constitution from the Finance Commission.
Allaying apprehensions of some Jammu based Members that more revenue is collected from Jammu while the spending are more in Kashmir, the Minister said from all accounts, the State is a single entity and there is no room for debate as to wherefrom the revenue gets generated. However, he clarified and elaborated on the sources from where the taxes are generated. In this context, he made a mention of the Lakhanpur Toll Plaza, where all the entering entities, bound to Ladakh, Kashmir or Jammu, have to pay the entry and toll taxes. Besides, the corporate headquarters of almost all the commercial and multinational companies, operating in the entire State, are located in Jammu, and as such the taxes thus collected from all the three regions get reflected as revenue of Jammu Division. Moreover, he said, all the three Motor Sprit Companies, selling their products across the State, are also located in Jammu whose tax receipts are also counted in the Jammu Head. Therefore, an allegation that more tax is collected from Jammu is misleading and distortion of facts, he maintained. Quoting figures for the year 2008-09 in this regard, the Minister said that against a total realization of account of VAT/GST and MST amounting to Rs.1765 crore, e an amount of Rs.480 crore pertains to Jammu Division and Rs.490 crore pertains to Kashmir- division and Rs. 795 crore have been collected in Jammu for the whole state.
Appreciating the performance of his departments, Mr. Rather said that the Commercial Taxes Department has registered growth of 17% with a record increase of Rs. 400 crore in its revenue collections during 2009-10, against the previous year. He said the revenue collected by the department in 2000-01 was Rs. 387.80 crore and the department is stated to collect an amount of Rs 2197 crore. He said that 17% growth in VAT collection in the State, is higher than even the national average of nearly 12%. He attributed increase in revenue realization to the effective tax management, dedicated performance and regular monitoring at various levels for which the staff and officers of the Commercial Tax Department. This, he said, will further improve with complete computerization deserve appreciation of the department, which will help check leakages and loopholes and will also help the tax prayers in a big way, as they may not have to wait for long hours in filing returns or depositing various dues, following the introduction of e-governance with regard to filing returns etc online.
The Minister said that revenue in the Excise Department has increased to Rs. 70 crore, as compared to the corresponding period last year, adding that tax revenue of about Rs. 590 crore is expected by the end of the current financial year. This reflects an increase of 14. 07 % over last year’s revenue of Rs.517.22.