Issac promises package for trade promotion

Kochi, Aug 31 (UNI) Revising the sales tax collection target to Rs 4,600 crore for this fiscal, Kerala Finance Minister Thomas Issac today promised a special package for promotion of trade if the revised target was achieved.

Inuaugurating the state government's 'Lucky VAT Scheme' in this district, Mr Issac said the special package would be included in the next budget if the revised target of Rs 4,600 crore was met.

Mr Issac said that the sales tax collections last year were Rs 3,000 crore and the government had set a target of Rs 4,000 crore in this year's budget. The government had also announced that one per cent of the Rs 4,000 crore would be set aside for a welfare fund for traders.

Describing the 'Lucky VAT Scheme' as a major initiative of the state government to increase sales tax receipts, Mr Issac said that it will encourage consumers to insist on bills for purchases made.

The state government will be spending Rs seven crore to educate consumers on the importance of VAT, he said.

On the state slipping into overdraft, Mr Issac said the total deficit was around Rs 741 crore. Higher tax collections and stricter financial accountability were the only ways to deal with the situation, he added.

To streamline the government's efforts to check sales tax evasion on goods brought into the state, an integrated modern checkpost system would be implemented by October-November this year, he said.

UNI ARC DK1819