By IANS,
Bangalore : The Karnataka government, in association with the Reserve Bank of India (RBI), Thursday unveiled an electronic payment (e-payment) and reconciliation system for commercial tax payers in the state.
Touted to be the first of its kind in the country, the system will enable businesses and dealers to remit commercial taxes online anytime, anywhere.
The central bank plans to adopt the e-payment system in other states after evaluating the pilot project in this southern state.
Currently, six state-run banks, including State Bank of India (SBI), State Bank of Mysore (SBM), State Bank of Hyderabad (SBH), Syndicate Bank, Canara Bank and Union Bank of India have been connected to the system for remitting taxes.
“Going forward, more state-run and private banks will join the system so that more payers can make use of it to help curb tax evasion,” Chief Minister B.S. Yeddyurappa said on the occasion here.
RBI deputy governor Shyamala Gopinath also unveiled the e-payment reconciliation system that will enable commercial tax payers to reconcile their accounts with the government treasury seamlessly through the portal.
The state’s commercial tax department processes about 100,000 cheques a month through its offices across the state, mobilising about Rs.2,000 crore a month on average.
“The e-payment system will not only enable dealers to remit instantly, but also eliminates inherent delays present in the conventional system, as cheques had to be processed by banks and remitted to the treasury account,” finance department’s Principal Secretary L.V. Nagarajan said.
Thanking the RBI for selecting Karnataka to introduce the system, the chief minister said the online portal would increase the compliance rate on the part of tax payers and improve tax collections, which has shown a healthy trend.
“The e-payment system will ensure transparency and improve efficiency in the tax department to mobilise more resources,” Yeddyurappa added.