Bangalore:
Negligence of officials in the Commercial Tax department has deprived the state of Rs 758 crore since 1999.
The Public Accounts Committee (PAC) of the Karnataka Legislature has recommended action against these officials who have allegedly failed to collect tax arrears from individuals and traders stating that the defaulters were absconding.
The total taxes due to the department was Rs 3,751 crore, including the Rs 758 crore pertaining to those who are "not traceable". Highlighting the grave negligence of the officials in recovering arrears, the Public Accounts Committee (PAC), headed by ruling Bharatiya Janata Party (BJP) member S Shivanna in the Karnataka Assembly in its report submitted to the House on December 14, said officials have made no credible attempt to trace the defaulters. The Public Accounts Committee (PAC) has unanimously recommended to the state government to take disciplinary action against the officials.
To the shock of Public Accounts Committee (PAC) members, officials were not even able to name the defaulters. According to PAC, the total tax arrears at the end of March 2010 stood at Rs 4,867 crore, which included Rs 3,751 crore pertaining to commercial taxes, followed by Rs 738 crore (Excise), Rs 241 core (Mining), Rs 73 crore (Cess and Taxes on Electricity), Rs 60 crore (Stamps and Duties) and Rs 4 crore (Transport dept).
Reacting sharply to the issue, senior Congress leader and former leader of the Opposition in the Legislative Council H K Patil urged the state government to take immediate measures to recover the arrears.
"The state government is more interested in taking the easy way out by raising loans and imposing fresh taxes instead of recovering the huge arrears," he said.