Traders make money, evade tax in Dhenkanal

Dhenkanal: Taking advantage of laxity in tax collection in Dhenkanal district, traders are making windfall profit by evading tax. The government is thus incurring huge loss of revenue as traders are flouting norms with impunity.

According to sources, bakeries, restaurants and those selling grain products without brand names are making huge profits by evading tax without the knowledge of the tax authorities. Branded bakery items are being sold without manufacture/expiry date in Dhenkanal and adjacent markets. Even stale products are marketed in Dhenkanal.

One businessman supplying grain products to Dhenkanal shopkeepers earns Rs 2 lakh per day. The earnings increase to Rs 5 lakh per day during festive seasons. Those selling vegetable food products too are making huge profit by supplying their items to restaurants yet they are not paying tax.

An Income Tax official said the enforcement authorities can raid the defaulting units and take action against them. "But we have no role as filing of IT returns has been made online. Our department has no investigation team to conduct raids at the district level. We are conducting raids only after receiving complaints."

Sources said 19 lakh assessees, both from within and outside the district, are attached under Dhenkanal IT office. The IT department collected Rs 11 crore in taxes in 2021-22. The department has a target to collect Rs 33 crore in tax for 2022-23. Every year, there is an increase of 10 to 15 per cent in tax collection by the IT.