Frequent bandhs lead to revenue loss in northeast | india | Hindustan Times
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Frequent bandhs lead to revenue loss in northeast

Excise duty collection from northeastern states is far below the expected target in the first quarter.

india Updated: Nov 03, 2005 22:46 IST
Newsfile

Frequent bandhs along with sluggish growth of industries and duty evasion in the northeast have led to poor excise collection in the region.

Excise duty collection from northeastern states is far below the expected target in the first quarter.

The Shillong Commissionerate, which is in charge of collection in six states barring Sikkim and Arunachal Pradesh, has in this quarter collected only Rs 629 crore as opposed to the target of Rs 754 crore, with the shortfall amounting to 38 per cent.

The all India percentage increase of excise duty collection was aboutsix per cent increase during the same period.

Assam contributes over 90 per cent of the total collection of tax among the six states. "Collection in Assam is largely from oil refineries," Karnail Singh, Commissioner of Central Excise, Shillong Commissionerate said.

He attributed the latest loss to bandhs, tax evasion and slow pace of industrial growth. Tax evasion in the region accounted for aboutfive per cent of the total tax evasion in the country, he said.

The North East Industrial Policy of 1997 provides a range of incentives for industrial development in the region, including refund of duty in the setting up of industries. Such incentives could provide an opportunity to fly-by-night operators rather than serious investors in the region, Singh said.

Last year alone, the department lost Rs 60 crore due to evasion by defaulters. The intelligence wing of the department was keeping a close watch on such dubious investors, Singh said.

The department has also sent a memorandum to Prime Minister Manmohan Singh for a new Northeast industrial policy, as the current policy lapses in 2007.