Jammu contributes 75%, Valley only 25% to taxes being collected in J&K

*Situation demands revisit of criteria for funds allocation
Mohinder Verma

JAMMU, June 13: Unbelievable it may sound but it is a fact that Jammu division is contributing around 75% to the taxes being collected by the Commercial Taxes Department of the State Government while as realization of taxes from the Kashmir division is only around 25%. The situation demands revisit of the criteria for allocation of funds for developmental activities in two divisions so as to bring an end to the feeling of discrimination.
The functioning of the Department of Commercial Taxes is based on trade activity across Jammu and Kashmir and most of the offices of Taxation Authority are concentrated in the commercial hub of the State-cities of Jammu and Srinagar. This department realizes taxes on account of VAT, MST, Entry Tax, Stamps and Registration.
As per the official figures, which were furnished in the Lower House by the Minister Incharge Finance in reply to the query of BJP MLA from Jammu East, Rajesh Gupta, Jammu division is far ahead of Kashmir division in contributing to the taxes being collected by the Commercial Taxes Department. While the realization of taxes in Jammu division hovers around 75% during the past three years, the same in Kashmir division remains around 25%.
During the year 2014-15, taxes to the tune of Rs 4760.77 crore were realized by the Commercial Taxes Department from the State, which includes Rs 3592.15 crore from Jammu division and Rs 1168.62 crore from Kashmir division.
During this year, Jammu division contributed Rs 2690.57 crore to the total of Rs 3744.93 crore Sales Tax/VAT recovered by the department as compared to Rs 1054.36 by the Kashmir division. Under Account Head-P-Tax, the contribution of Jammu division was Rs 8.58 crore as compared to Rs 4.16 crore by Kashmir division.
Similarly, during 2015-16 financial year, against total collection of Rs 5515.96 crore by the Commercial Taxes Department, the realization from Jammu division was to the tune of Rs 4126.89 crore as compared to Rs 1389.07 crore from Kashmir division. During the current financial year (up to ending April), Jammu division contributed Rs 749.49 crore to the total tax collection of Rs 976.90 crore as compared to Rs 227.41 crore by Kashmir division.
“No doubt, establishment of more companies and industrial units in Jammu as compared to Kashmir valley besides realization of taxes at Lakhanpur are considered as the reason behind maximum tax collection from Jammu division, there is no justification in not ensuring parity in the allocation of funds as this will send a wrong signal to those playing crucial role in generating resources for the State”, sources said.
They further said: “at the Union Government level, the States are allocated funds as per their contribution to the Central Pool of Taxes. Similar yardstick should be applied in Jammu and Kashmir and fair allocation of developmental funds must be ensured based on the contribution to the State taxes”.
“The revisit of the criteria for funds allocation is also imperative especially in the light of the fact that like several parts of Kashmir division including Ladakh region, there are numerous sub-regions in Jammu division which are still lagging behind on developmental front as such need special attention”, sources said.
Meanwhile, the Finance Minister refused to divulge the arrears of various taxes recoverable at the end of 2008-09, 2014-15 and at present along with the names of defaulters having outstanding of more than Rs 50 lakh.
Although such a list has been furnished to the State High Court in a Public Interest Litigation (PIL) and even appeared in media, the same was concealed from the elected representatives of the people by taking refuge under the garb of “sub-judice matter”.
“While dealing with the PIL on arrears of taxes, the High Court has never restrained the Government from making public the names of defaulters”, sources said.
Meanwhile, the Excise Department is still facing the daunting task of eradicating the menace of illicit liquor distillation and destruction of narcotics being cultivated mostly in different parts of Kashmir valley.
“No doubt, raids are being conducted continuously, people are booked and seizures are made, the Excise Department has a long way to go to check this deep-rooted menace”, sources said, adding “unless the cultivation of narcotics is completely brought to an end, the situation is not going to improve at the required pace”.

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