Chief Minister Siddaramaiah on Saturday issued a stern warning to officials of the Karnataka Commercial Taxes Department, stating that failure to meet the revenue target of ₹1.20 lakh crore set for the current financial year would lead to strict action. He emphasized the importance of accountability and performance, urging officers to exceed expectations.
Speaking at the Golden Jubilee celebrations of the Karnataka Commercial Taxes Services (Officers) Association held at Palace Grounds in Bengaluru, the Chief Minister said, “Last year’s target was ₹1.02 lakh crore. This year’s target is ₹1.20 lakh crore — an increase of ₹18,000 crore, which is achievable. If officers do not meet this goal, consequences will follow.”
Focus on Financial Stability and Development
Highlighting the state’s financial goals, Siddaramaiah noted that the government has presented a ₹4.09 lakh crore budget for 2025–26, of which ₹50,018 crore has been allocated for guarantee schemes. Over the past two years, nearly ₹90,000 crore has been spent on these schemes.
“Despite opposition criticism that guarantee schemes will bankrupt the state, the dedication and honest work of the department have ensured Karnataka’s financial strength,” he said, reaffirming the government’s commitment to public welfare.
Tax Evasion in Bengaluru Under Scanner
Siddaramaiah expressed concern over significant tax evasion in Bengaluru and called for stringent measures to curb the leakage. “Though I am the Finance Minister, I don’t want to interfere unnecessarily. But the government is determined to bring reforms to prevent such revenue loss,” he said.
He urged officers to treat their roles with utmost sincerity and serve both the government and society with honesty. “Our government stands by you. But in return, you must deliver,” he stressed.
Commitment to Officer Welfare
The CM also announced that funds will be sanctioned for the construction of a new Commercial Tax Bhavan in Mysuru. He acknowledged concerns about disparities in pay among Additional Commissioners, Joint Commissioners, and other officials despite the implementation of the 7th Pay Commission. “The government will review and address these issues,” he promised.
Aspire for No. 1 Position in GST Collection
Currently, Karnataka ranks second in the country in GST collections, behind Maharashtra. The Chief Minister challenged the department to aim for the top position. “Let’s shake off any inferiority complex and aim to overtake Maharashtra,” he said.
Economic Advisor Calls for Debate on 28% GST Slab
Addressing the gathering, Chief Minister’s Economic Advisor Basavaraj Rayareddy remarked that the framework for GST was laid out during Dr. Manmohan Singh’s tenure but was only implemented later by those who initially opposed it. He also called for a national discussion on the high 28% GST slab.
He stressed that effective and ethical tax collection was crucial to fund development projects and welfare schemes, reinforcing the pivotal role of the Commercial Taxes Department in meeting public expectations.
From Sales Tax to GST: A Journey of Reform
Rayareddy noted that the evolution from Sales Tax and VAT to GST has significantly improved revenue collection and reduced tax leakage. However, he acknowledged that leakage persists in Bengaluru and urged officers to step up surveillance and enforcement.
As the department celebrates 50 years of service, Siddaramaiah congratulated the officers for their contributions and credited their cooperation during his long tenure as Finance Minister, Deputy Chief Minister, and now as Chief Minister.
“Let Karnataka lead the country in GST collection — that’s our collective mission,” Siddaramaiah concluded.
