The Excise reforms will minimize GST loses- State Finance Department
Guwahati/ 28th June’2017 (Prag News Desk): Assam has lost substantial amount of revenue for years because of abnormal delay on the part of the State Government in notifying the rules of Excise reforms.
However, Assam’s revenue collection has witnessed a consistent ascent with 21 per cent in the past one year because of the Excise reforms.
According to reports, the State’s revenue collection went up by around 21.5 per cent in 2016-2017 and the Excise reforms have filled the loopholes in the revenue collection in other departments, particularly in Transport department.
It is this revenue collection statistics due to which the Centre has decided that if the revenue collection of the State does not increase by 14 per cent in a year after the implementation of the Goods and Services Tax (GST), the balance amount would be compensated.
The Excise Reforms by State Government was passed in the Assembly way back in 2001 however due to reasons unknown, these reforms could not be implemented on the ground level that resulted in heavy revenue losses.
Here, the present government has notified the Excise reform rules and some new reforms were also brought, which resulted in substantial increase in revenue collection since one year.
Here, the excise scam is a hindrance as illegal liquor is transported in the Assam-Arunachal border backed by fake papers. The very reason that causes revenue loss to the State.
Sources revealed that at least 18 bonded warehouses were functioning all along the Assam-Arunachal Pradesh border areas involved in illegal liquor syndicate. The Excise reforms has monitored that same and most of these warehouses are closed.
Now the State government is expecting that the Excise revenue collection in the State would go up further as the tenure continues. Here, reviewed tax rates will majorly draw in revenue to the State.Adding to it, the penalty for the overdue amounts of entry tax, which encouraged the dealers to pay up the dues immediately prior the onset of GST.
Government initiative of computerization of the records of the Transport department has also helped in plugging the leakages and increased revenue collection in the State, a major draw-in for the BJP anti-corruption spree.