With improved collection of taxes and the elections to the Assembly round the corner, Chief Minister Basavaraj Bommai has not proposed any tax, even as he set higher targets for the revenue earning departments. In a relief to the lower income group, the tax exemption limit for professional tax has been raised from ₹15,000 to ₹25,000 per month.
Barring Mines and Geology that is yet to meet the revenue target, all other revenue generating departments have surpassed their targets.
While the Commercial Tax Department has already collected ₹83,000 crore as against the target ₹72,000 crore, 15% higher than the target, the government has fixed a target of ₹92,000 crore, excluding GST compensation, for 2023-2024.
In terms of stamps and registration, the department has already collected ₹17,000 crore against the target of ₹15,000 crore, 13% higher than the Budget estimate, and has been set a target of ₹19,000 crore.
Excise revenue higher
Excise revenue of ₹32,000 crore has already been collected, which is 10% higher than the target of ₹29,000 crore, and a target of ₹35,000 crore has been set for next year. With the Transport Department collecting ₹9,007 crore, 10% higher than the target of ₹8,007 crore, it has been set a a target of collecting ₹10,500 crore.
The Mines and Geology Department, with a collection of ₹4,620 crore, is currently short of the target of ₹6,500 crore and has been set a target of ₹7,500 crore for the new year.
Karsamadhana scheme
To settle the decade-old tax-related disputes in the Commercial and the Excise Departments, he also announced the ‘Karasamadhana’ scheme. A total of ₹15,771 crore remains as arrears in commercial tax and ₹613 crore in excise.
According to the Budget proposal, the scheme has been announced to expediously resolve pre-GST legacy tax disputes and to collect the arrears promptly without litigation. It entails waiving interest and penalties to those making full payment of tax arrears on or before October 30, 2023. Similarly, interest and penalty will be waived for those who make payment of basic amount relating to arrack/ toddy rentals on or before June 30, 2023.
