DIMAPUR, OCTOBER 6 (MExN): Additional chief secretary and finance commissioner, Toshi Aier on Saturday said that the recommendations of the 13th Finance Commission have been “very harsh” and “very stiff” against the State. He called it “very harsh and stiff” owing to the normative formula of restricting the non-plan revenue expenditure to 35 % for a special category state like Nagaland where the expenditure is over 60% having a workforce of 1.25 lakh employees.
Speaking at the launching of training programme for officers and staff at the office of commissioner of taxes, Dimapur, Toshi said Nagaland is heavily dependent on central grants due to poor resources of its own revenue which is only 8% while the remaining 92 % comes from the centre. He said Nagaland was still lagging behind despite the government norm of awarding 90% grant and 10% loan for special category states. For other non-special category states, it is 70% loan and 30% grant, he added. So the 35% normative approach has been very harsh when the non-plan revenue expenditure is 60%, Toshi asserted. He said the 13th FC has made strict stipulations at par with other progressive states. “We have to work hard and earn more revenue,” he said.
The finance commissioner said that the only hope for Nagaland is the 14th FC the constituting process for which has already begun. “The 14th FC should have special category to address our special needs and not apply the same yardstick adopted for other progressive states,” he said. Toshi urged that the newly recruited officers, for whom the training programme has been organised, should understand the importance such nitty-gritty. Stating that their strength lies in being hardworking, he asked the trainees to make outmost use of the training programme and make it meaningful.
In his welcome address, commissioner of taxes, Dinesh Kumar IAS said that the state witnessed a growth rate of 35 % tax revenue collected during the year 2011-12 at Rs 258.36 crore. While the revenue target for 2012-13 is Rs 310 crore, the revenue collected till July 2012 was Rs 77 crore with a growth rate of 28.33% over the last year in the same period.
However, Dinesh also pointed out some areas where the department has not been able to realise adequate revenues. He said that there were many dealers in Hong Kong Market, Hazi Park, Shangrila Market in Dimapur and other markets in Kohima who have not registered themselves with the government yet still doing business. He also disclosed that the levy of 1 % tax from MP&MLA LADPF in Dimapur district has not been deducted despite notice to the Deputy Commissioner. He lamented that the PAN card coverage was only 25 % making Nagaland the worst performing state in the northeast.
Dinesh revealed some of the new measures and initiatives taken by the department to enhance revenue such as amendment in the tax rate w.e.f April 1, 2011, increase in tax rate on tobacco products from 13.25% to 15%, VAT on textiles @ 4.75 % w.e.f October 31, 2011, meeting with all different sector/commodity dealers for augmentation of revenue collection etc.
The training programme which will conclude on December 19 has roped in a host of resource persons including under secretary Nagaland Information Commission, Worhonthung Ezung; Principal Dimapur Law College, Leonard; retd commissioner of taxes, R.O. Ovung and others.
