Lieutenant governor VK Saxena
Delhi lieutenant governor (LG) VK Saxena on Monday wrote to chief minister Arvind Kejriwal urging him to get “tax evasion to the tune of ₹3028 crore in Delhi” probed, officials aware of the matter said.
The LG’s letter is based on a report of the Central Board of Indirect Taxes and Customs, released in January this year, which highlighted the issue of bogus registrations and fake invoices in the country, they added.
“The report for the third quarter brings out shocking facts about the extent of tax evasion prevailing in Delhi. I am constrained to draw your attention to the fact that Delhi has achieved the inglorious distinction of recording the highest tax evasion in the country. In all, 483 bogus firms were detected, which accounted for ₹3,028 crore of tax evasion. It is indeed dubious that the Capital of the country tops the list of tax evasion amongst all states and UTs, with the one on the second place behind Delhi by as much as ₹827 crore. This is a serious matter in which the possibility of collusion of officials in the GST department cannot be ruled out,” LG stated in the letter.
HT has not seen the report.
“I would advise you to direct the finance minister to hold a detailed inquiry in the matter and assess the root cause of such tax evasions. This not only reflects poorly on the state of tax governance in the national capital, but also results in a huge loss to the public exchequer. This resource could have been meaningfully utilised for investments in public interest,” LG wrote in the letter.
“I trust that you will personally take interest in the matter and apprise me of the efforts being made to tighten the tax administration in the city,” LG said.
Reacting to LG’s letter, the Delhi government said that it vehemently condemned any instances of tax evasion and is unwaveringly committed to enforcing strict compliance with tax laws. The strictest possible action will be initiated against the violators at once, it added.
“Despite our efforts at proactive collaboration with IIT Hyderabad to develop software targeting tax evasion and improving revenue collection, we are dismayed by the fact that the proposal has been languishing among bureaucratic offices for almost a year. A full year has passed since the initiation of the proposal in February, yet it is only now, after 12 months, that it is slated to be presented before the cabinet. This delay has only happened because of the GNCTD Amendment Act.”
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