ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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SRI LANKA-Compensation to Whom and for What

NORTH Plugging Sales Tax Evasion NO reliable estimate of the extent of tax evasion in Punjab is available, but realising that there is much scope for tightening the collection machinery the state government has appointed another committee to check such leakage of revenue. The committee will consider amendments to the existing laws to plug loopholes in them and suggest ways to make collection machinery more efficient. The focus, presumably, will he on the sales tax which constitutes the biggest single source of tax revenue to the state, accounting for over Rs 69 crores, or 38 per cent, of the 1975-76 budget estimate of total tax revenue of Rs 180 crores. With the power situation distinctly better and regular supplies of electricity assured to farms and factories during the coming months, the yield from sales tax is expected to be even higher, especially because early in July the state government announced enhancement of the tax rates on a number of commodities. The general one per cent increase applies also to sales to government departments and to transactions in rice and paddy. The Har- yana government has also stepped up the sales tax rate on foodgrains.
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