State to facilitate e-filing of returns, e-payment of tax

The Karnataka government would take measures to facilitate electronic filing of returns, electronic payment of taxes, and put in place electronic capture and verification of returns and movement of goods.

These measures are aimed at improving tax compliance and make tax administration more effective and efficient, to give a fillip to revenue collection, according to the Medium Term Fiscal Plan 2010-2014 tabled in the ongoing session of the Karnataka Legislative Assembly. Various e-governance initiatives to reduce physical interaction between the taxpayers and the Government and to enhance revenue collections by making it simpler for citizens to pay their taxes are being undertaken.

“Online payment of taxes would save time, provide convenient service to the taxpayer, and at the same time reduce the cost of collection of taxes,” the MTFP said. A suitable mechanism would be designed to reduce interpretational issues at different levels and to provide a congenial atmosphere for increased self-compliance.

A comprehensive capacity building programme would be taken up to enhance the capability of the officers.

On the proposed Goods and Services Tax (GST), the MTFP said the important concern of the state government is regarding revenue neutral rate for the State GST, which is proposed to be on an all state aggregate basis. “Karnataka having achieved the highest tax effort as a percentage of GSDP, may suffer revenue losses under the uniform state GST rate in the medium term as was experienced under the VAT,” it said.