SHILLONG: Financial mismanagement and living beyond means in the Autonomous District Councils across the board is a common old story, perhaps with the lone exception of KHADC.
Bloated staff appointment and mismatched revenue collection, apart from state government’s inability to release tax share with the ADCs, are a common thread which have made the District Councils gasp for survival.
With higher revenue base and better collection of taxes, KHADC appears to be a tad better placed than two other Councils in Jowai and Tura. Revenue generation by way of revised Trading License fees and Professional Taxes from hundreds of professionals in Shillong, have made the cutting edge difference.
According to KHADC Executive Member in charge of Taxation, Paul Lyngdoh, the Council was maintaining financial discipline by not resorting to random appointment of staff, unlike other two Autonomous District Councils of Jaintia Hills and Garo Hills.
He told reporters on Friday that by exercising financial prudence, KHADC, which had a monthly salary bill of Rs 4 crore, had ensured that “we can survive”.
He said that unlike the other ADCs of Jaintia and Garo Hills which had over a thousand employees on their payroll, the KHADC staff strength was around 800. The other two Councils were heavily in the red, so much so that the employees have been going without salary for several months.
Their case has not been helped by the state government’s inability to release the share of taxes on minor minerals, forest etc.
Reforms on the cards
To plug leakages and to ensure complete compliance of taxpayers, the Department of Taxation of KHADC will switch to computerisation of the department rather than depend on the manual collection of tax. Once computerisation was complete tax payers would be able to pay their taxes without giving any excuses of lockdown, curfew, or shortage of manpower. This would also go a long way to plug leakages.
Lyngdoh spoke to the press following a review meeting on Friday of the department of Taxation wherein an overall review of the performance of the department in the previous years was made and discussions were made on measures to improve the functioning of the department.
In the year 2019-20, the Council received Rs 8.95 crore and “if there was total compliance, the amount would have been double or more than double”, he said.
The KHADC department of Taxation implements the Meghalaya Professions, Trades, Callings and Employment Taxation Act and collects tax from the other four districts under the jurisdiction of KHADC — East Khasi Hills, Ri-Bhoi District, South West Khasi Hills and West Khasi Hills.
Lyngdoh said that the review meeting laid stress on the revenue loss of the Council which is more than 50 per cent and it may also come to 60-65 per cent due to irregular payment of professional tax by tax payers.
Lyngdoh went on to say that there is tampering of paper works and the tax payers provide incorrect declaration.
Asked whether, District Council Court lawyers pay professional tax or not, the officers present said that the lawyers do not pay professional tax as their salary is not fixed.
“But going strictly by the act, everyone should pay. But then again, to ensure total compliance, we must improve the internal system rather than point at the defaulter”, Lyngdoh said.
Committee formed
To transform the working model of the department from its manual form to computer system, the department has formed the committee headed by Deputy Secretary of the department, Henry Syiem assisted by special officer, Paul Suting and other officers. The committee will seek a feedback from the other 3 districts and the committee has given a one month time to propose the modalities prepared to transform the department.
For the improvement of technology in the Council, the department has mooted for setting up a wi-fi signal, improve the functioning of the reception and internet service in the Council. He said that there will be people who will handle the data entry as the database will include all trades/callings.
“The compiled database will serve as a basis where we will be able to realize the tax money from the tax payers”, he said.
Another measure to improve the working of the department is to identify computer literate people and give them an orientation training to handle the works once the system is computerised.
