Will boost revenue without raising taxes: Bengal Finance Minister Swapan Dasgupta

The West Bengal government is focusing on widening the tax base, formalising the informal economy and improving tax compliance rather than imposing additional taxes to enhance the state’s revenue, state Finance Minister Swapan Dasgupta said.

Replying to discussions on the Comptroller and Auditor General (CAG) report and other financial matters in the Assembly on Saturday, the Finance Minister outlined the government’s roadmap for increasing revenue while keeping the tax burden on citizens unchanged.

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Dasgupta said the state had consciously refrained from increasing professional tax despite the need to strengthen its finances.

“Our discussion centred on professional tax. We have not increased the tax; instead, we have chosen to keep expenditure under control,” he said.

Rejecting allegations of excessive taxation, the Finance Minister asserted that the government had no intention of imposing a double tax burden on citizens.

“Are we resorting to double taxation? No. Had that been the case, it would certainly have been a matter of concern,” he told the House.

Dasgupta observed that while income tax deducted from the salaries of government employees contributes to the state’s revenues, the number of government employees has been declining, in line with trends seen across the country.

At the same time, employment in the private and other sectors has been expanding, prompting the government to devise new strategies for revenue generation. He said the administration’s priority was to bring more enterprises and workers from the informal sector into the organised economy, thereby improving tax compliance and expanding the state’s revenue base.

“We want to bring the informal sector into the formal organised sector. We will increase revenue. Going by the present trend, revenue from the state is expected to grow by around 18 per cent,” Dasgupta said.

The Finance Minister also indicated that the government would review tax concessions granted to certain sectors in the past. He said exemptions earlier extended to the mining sector by the previous state government were now being brought under review as part of the revenue augmentation exercise.

Highlighting the government’s future strategy, Dasgupta said technology, including artificial intelligence, would play a key role in improving tax administration and enforcement. Strengthening policing against tax evasion and expanding business activity would also contribute to higher GST collections and overall revenue growth.

He maintained that the government’s economic policy sought to balance fiscal discipline with public welfare by avoiding additional financial pressure on ordinary citizens while ensuring sustainable growth in the state’s revenues.