BHOPAL : Preparations to make further hike in taxes are on in the state to give government employees salaries as per seventh pay commission. The state government needs around Rs 9000 crore to pay salaries in accordance to recommendations of the commission. To arrange this huge amount, departments which collect revenue have been asked to make preparations. Departments related to sales tax, excise, transport and registration have been asked to prepare a plan to increase their income to arrange money.
In the recent past, Re 1 as VAT was increased on petrol price in the state due to its ramshackle financial condition. The purview of professional tax has also been expanded including educational institutions and other commercial sectors.
Commercial Tax Department is doing assessment regarding determination of hike in taxes on goods and eatables. It is also being assessed as to how to increase income of Excise Department. Ways to increase income from ‘Afeem’, ‘Doda-Chura’ besides liquor are also being explored.
A proposal to raise by 33 per cent as target of departments involved in revenue collection is being considered. Finance Department has also been asked to assess the financial load on giving salaries as per recommendations of the commission. Finance Department has estimated that it would cost around 9000 crore. The ways to arrange the said amount are being contemplated.
8,000 crore to be spent on relief distribution
The government has to shell out Rs 8000 crore to be given as relief to farmers suffering from drought and crop damage, crop insurance scheme, to check recovery of loan and to give subsidy on interest-free loan. As possibility of any relief to farmers from Central government’s side seems remote, the state government is going to bear the burden. Sources said the government is facing problems in arranging the money despite stopping its construction works and curtailing expenses. Because of poor financial condition, the officers have also been asked to find out new sources of income.
