Kerala plans to adopt sales tax collection system of Delhi

Kerala Finance Minister Thomas Isaac today said his government plans to introduce a new online sales tax collection system using latest technology similar to the one in Delhi.
"If required, we will bring out a new legislation to implement the scheme," he said in a statement after a meeting with Delhi Chief Minister Arvind Kejriwal.
Isaac said that under the proposed new system, his ministry would access the bill details from traders through a sophisticated software to make tax collection hassle-free, instead of resorting to the "usual practice of inspection and raids".
"We hope the traders will cooperate with the new scheme," he said, adding the government expects 20 per cent growth in sales tax collection next year.

"We plan to stop the usual practice of inspection and raid at the places of trade and make the process of tax collection hassle-free through an online process which was successfully implemented by the Delhi government last year," Isaac said.
This scheme has helped the Delhi government in attaining 24 per cent growth rate in tax collection last financial year, he added.

Isaac met Kejriwal and his deputy Manish Sisodia and discussed various tax collection schemes being implemented in Delhi.
Earlier, the Delhi government had adopted the 'Lucky VAT coupon' project of Kerala government in the name of 'Bill Banavo, Inam Pavo'.

Eighty-five per cent of the tax amount collected in Kerala is from 16,000 traders out of a total of two lakh in the state, Isaac said.