Lack of proper database hampers professional tax collection

Professional tax collection remains inefficient as the shift to the online system is yet to be complete in most urban local bodies. Due to the absence of a complete database, with details of employees in all professional organisations and commercial establishments within the local body, the local bodies are unable to seek professional tax payment from those who do not pay the taxes. The shift to an online system for professional tax collection began three years ago with the Indian Institute of Information Technology and Management-Kerala (IIITM-K). The expenditure for the project was from the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme’s reform incentives. The project cost is ₹15.34 crore and includes provision for technical manpower, stationery and communication, faculty supervision cost, training, maintenance cost (recurring), and security audit charges. A prototype model of the system, developed and implemented by the IIITM-K, is being run in the municipal corporations in the State. The online system is currently hosted at https://professiontax.lsgkerala.gov.in. However, unlike the database for property tax collection, there is no detailed database at present for professional tax collection. For instance, in the Thiruvananthapuram city Corporation, the property tax database consists of 4.59 lakh people, with the details of the tax pending in their name available readily. However, when it comes to professional tax, the database is limited to the name of the employer and the total amount deducted. The detailed breakup of the employees and the tax pending are not available. “In the case of government employees, we will get the full database of employees if this system is linked to the Service and Payroll Administrative Repository of Kerala (SPARK). But, there is no issue with professional tax payment from government employees as it is deducted on time. But there is really no way to keep track of private enterprises. In the case of traders, we usually ensure that professional tax for all employees are paid when they come for the annual license renewal. We will have a proper database to raise demand for tax if we have the employees list and details including basic salary,” said an official of the Thiruvananthapuram Corporation.