Rampant tax evasion by certain sectors: Singhal

Ahmedabad, Sep 27 (UNI) Central Board of Excise and Customs chairman S K Singhal has rued that there is rampant tax evasion by certain sectors like ''gutkha'' and ''pan masala'' manufacturers.

Addressing a meeting organised by the Gujarat Chamber of Commerce and Industry (GCCI) here yesterday, he said these sectors were evading taxes to the tune of crores of rupees.

As a result, the government was able to collect only a small amount as excise and custom duty against the expected collection.

The government, therefore, does not have any alternative but to take deterrent measures against such industries, he said while urging institutions like the GCCI to advise such industries to pay their taxes honestly.

He said that maximum compliance of taxes will inspire the government to provide maximum facilities to industries. The government is committed to provide maximum help and cooperation to the trade and industry because without the speedy development of this sector, it is not possible for the country to achieve speedy economic growth.

He hoped that a time will come when there will be no need to carry out searches, raids and seizures if industries paid their taxes honestly.

He said the Central Excise and Customs department had collected more than Rs 1.70 lakh crore during 2006-07 which exceeded the revised target.

Earlier in her welcome address, GCCI president Paruben M Jaykrishna urged the need to implement recommendations of the Dr Kelkar Committee regarding moderating tax rates, reforming tax structure and simplifying the procedures. She also urged the need to amend the Customs Act 1962.

UNI