Panaji: Moves to hike taxes on the common man and on professionals will be detrimental as it will increase the burden on the industry, said Goa Chamber of Commerce and Industry (GCCI).
GCCI has said that the focus of the state, particularly the Goa State Finance Commission, should be on increasing the tax base.
Aside from increasing the number of tax payers, the government must also ensure that funds are efficiently utilised, said GCCI in its recommendations to the state finance commission.
“The focus must be on increasing the taxation base rather than increasing taxes,” said GCCI. “GCCI is of the strong view that if the grants from state government and central government are properly utilized and the social security schemes on which huge public funds are spent are made open only to the needy there is no need for further taxing any strata of the Goan economy.”
The Goa state Finance Commission (GSFC) chairman Daulat Hawaldar and his team met with GCCI officials to discuss devolution and utilization of funds.
GCCI has objected to a proposal to levy of professional tax on professionals such as chartered accountants, lawyers, doctors and other professionals.
“GCCI requested Goa state finance commission to ensure that the local industry, professionals and the businesses who are just trying to come to normalcy from the Covid 19 pandemic effect are not burdened further. The recent hike in minimum daily wages has already burdened Goan businesses and levying of any taxes will drastically affect the profitability,” said a GCCI director general Sanjay Amonkar.
The state finance commission has been formed to make recommendations for the distribution of taxes, tolls and fees between the state and the local bodies. Hawaldar also discussed measures to improve the financials of local bodies.
GCCI also expressed concern over the lack of action on some of the “vital recommendations” made by the earlier finance commission like non-creation of additional posts in government departments, recruitments to be done through Goa State Public Commission, and auditing of incomes and expenditures of local bodies.
“Necessary action on the recommendations like above would have definitely reduced the financial burden on local bodies. Further, this would have brought in financial discipline in these bodies which is a matter of concern,” said GCCI director general Sanjay Amonkar.
GCCI also recommended that the expenditure of local bodies should be regularly audited and put in public domain.