BHUBANESWAR: The Assembly on Wednesday passed the Orissa Sales Tax (Settlement of Arrears) Bill, 2011. This will allow the Government to waive out certain amount of arrear tax, interest and penal interest under one time settlement (OTS) scheme. Allaying the fears of Opposition members that the new legislation will help big and wilful defaulters, Finance Minister Prafulla Ghadai told the House that the Bill would mostly deal with cases of small and medium traders. Though the Orissa Sales Tax Act, 1947, has been repealed with the enforcement of Orissa Value Added Tax Act, 2004, a large number of disputes are pending in different courts. There are cases of 58 years old and many of the litigants have passed away. Those who are alive are fed up with the long legal trials. Many of them have been requesting the Government since long to find a way to settle their cases. The Bill intended to settle the pending arrear sales tax dues regulated under the previous Acts under OTS scheme. This will enable the Government to collect additional resources for the State through this legislative measure. The Finance Minister further assured that admissible tax will not be waived. While the disputed sales tax till the end of March 31, 2008 was ` 1,030.39 crore, the net arrear was calculated at ` 1,124.51 crore. Cases pertaining to arrear sales tax amounting ` 36.40 crore is pending in the Supreme Court while disputes relating to ` 247.34 crore were locked up in the Orissa High Court, he said. Although an attempt was made by the Government in 1999 by offering a waiver of 60 per cent under OTS, the scheme was not acceptable to many. Meanwhile, a high power committee headed by the Chief Secretary has resolved 28 cases in two phases and realised over ` 7.82 crore arrear dues. Congress Chief Whip Prasad Harichandan said the new legislation would not help the Government in realising the arrear dues in view of the large number of vacancies in the Commercial Tax Department. He claimed that 975 posts in different grades are lying vacant as against the sanctioned strength of 2,695. The Comptroller and Auditor General (CAG) has been pointing out short levy and non-levy of taxes for years together, but the Government has done nothing to improve the situation. Besides, the Public Accounts Committee (PAC) is examining the Government accounts every year and submitting its reports to the Government. He alleged that the Government is sitting over the PAC recommendations.
Comments
0 comment