Delhi Earns Dubious Distinction: Highest Tax Evasion Record Sparks Urgent Inquiry

The Lieutenant Governor of Delhi, VK Saxena, has revealed that Delhi holds the dubious record of having the highest tax evasion among all states and Union Territories in India. In a letter to Delhi Chief Minister Arvind Kejriwal, Saxena highlighted the alarming state of tax governance in the city.

According to the letter, 483 bogus firms have been detected, contributing to a significant Rs. 3,028 crore of tax evasion. This amount surpasses the second-highest state in this list by Rs. 827 crore.

LG Saxena expressed concern about the possible involvement of officials from the local GST Department in these malpractices. He urged Chief Minister Kejriwal to initiate a thorough inquiry into the matter, recommending that Finance Minister Nirmala Sitharaman lead the investigation to uncover the extent of tax evasion and its underlying causes. The revelation that the national capital leads in tax evasion raises serious questions about the state of tax governance in Delhi, eroding public trust in the system, according to Saxena's assertions.