Form 88 comes into force in MP

The system of using Declaration Form 88 on 34 noted commodities has come into force from September 1 in the state.

Dubbed as the reincarnation of the infamous Form 75 of the Digvijay Singh regime, the Form 88 would be utilised as an instrument of declaration, which would be applicable for 34 items brought into Madhya Pradesh from other states.

Traders fear a hike in commodity prices as a result of the declaration and have demanded that it be revoked. However, the commercial tax department clarified that the new system would neither lead to any price hike nor put any additional tax burden on traders and customers.

In addition to the form, inspection at the check-posts on the borders, where transporters would have to submit copies of the form, have also been strengthened.

The state government expects to boost its tax revenue as the declaration form submitted at the check-posts would help prevent tax evasion substantially.

According to government statistics, the installation of check-posts in May 2002 led to a 23 per cent growth in tax revenue compared with its previous year.

"Apart from this, we had a 34 per cent revenue growth in other unorganised sector the same year," said an official.

"This time, the declaration form is applicable on evasion-prone items and for incoming gods only," informed deputy commissioner AK Shukla.

The declaration is not a new concept and a host of other states such as Rajasthan, Himachal Pradesh, Punjab, Haryana, Gujarat, West Bengal, Orissa and Chhattisgarh have implemented it.

"In these states, check-post inspection is done for both incoming and outgoing goods, whereas in MP it is just for the incoming goods and that too for only 34 items," he said.

He alleged the fear is fabricated by a few traders with vested interests who want to evade tax and pressurise the government to revoke the new system.

"It is the myopic attitude of a few traders, which is preventing them from accepting the new system," said P M Janoria, deputy commissioner, commercial tax. He said the provision of declaration form exists in the proposed VAT Act too.

The state government also feels that the allegation made by the state Congress committee on the price hike due to Form 88 is baseless.