Further to my earlier Suggestions reg. immediate Revenue Augmentation, I am submitting a medium term plan. Out of this, Inflation-indexing of Property Tax, Water &Drainage Tax , use of GIS mapping for Property Tax assessments, Stamp duty reduction( like Maharashtra) etc. can be done on Priority basis. 1. Tax Revenue Augmentation (SOTR Reforms) Tax revenue constitutes roughly 75% of Tamil Nadu's total revenue receipts. Augmentation here relies less on raising tax rates (which can hurt industrial competitiveness) and more on widening the base, curbing leakages, and updating lagging valuations . State Goods and Services Tax (SGST) Data-Driven Enforcement and Audit: Utilizing advanced data analytics, AI, and end-to-end e-invoicing verification to identify data mismatches between GSTR-1, GSTR-3B, and e-way bills. This targets systematic input tax credit (ITC) fraud, which has historically caused severe leakages. Widening the Service Tax Net: Given that the service sector ...
Suggested “Financial Bazooka” for the new TN CM to reduce Revenue Deficit Based on the 2026-27 interim budget projections and industry benchmarks for fiscal reforms, the streamlining of these sectors could provide a significant boost to the state treasury. However, while these measures can drastically reduce the revenue deficit, they are unlikely to wipe it out in a single fiscal year due to the sheer scale of the state's committed expenditures. Here is a breakdown of the expected impact: 1. Estimated Annual Revenue Gains Based on current fiscal data and the "leakage" typically associated with non-transparent systems, here is the projected additional annual revenue: Reform Area Estimated Additional Revenue (Annual) Rationale Mining Auctions ₹1,500 – ₹2,000 Crore Moving from a fixed-price/royalty model to competitive e-auctions (especially for sand and blue metal) historical...