Bengal braced for falling tax revenue after big business challenge

The Indian state of West Bengal is braced to see a fall in tax revenue this year after Tata Steel, Cadbury and other multinationals challenged one of its tax laws.

Calcutta: Court decision Radiokafka

The companies - also including GlaxoSmithKline, Whirlpool and Godrej Consumer - challenged the constitutionality of the Entry of Goods into Local Areas Act 2012. Their view was upheld in June this year by a judge sitting alone but a hearing of the Calcutta High Court has now supported the action of the state and is allowing assessment and collection to continue. 

Dealers not paying

In reality, however, some dealers are just not paying the tax on goods imported to the country. Last year tax receipts went up 16% and there are concerns that it might stand still or grow less fast in 2013/14. Binod Kumar, Commissioner of commercial tax in West Bengal, sees some parts of the case as being very clear. 'The collection of tax is constitutional,' he said, according to The Business Standard.

Email your news and story ideas to: [email protected]