Strategy for resource mobilization and employees' behaviors

Birendra Laishram *

The departments responsible for Taxes, Non-tax revenue, and Shops and Establishments in Manipur must collaborate effectively with law enforcement to boost State income. Business establishments, including Foreign Direct Investments, often seek States where the Government may overlook illegal activities for a price. Large companies prefer regions with a cheap labor force, minimizing complaints even when basic worker needs are unmet.

For example, businesses aim to hire employees who do not demand essential workplace facilities such as canteens, childcare, medical services, health insurance, and proper application of labor laws like the Payment of Wages Act and Factory Acts.

In Manipur, the lack of marketing intelligence and a weak Tax Department, along with corrupt law enforcement, make it appealing for such businesses. Consequently, many entrepreneurs are flocking to Manipur, viewing it as an ideal location for investment.

Some States station Tax Inspectors in cities to randomly check buyers' bags for purchase receipts. If receipts are missing, Inspectors visit the respective shops and initiate legal action, as such purchases may involve tax evasion. It is common for businesses to receive more units from dealers than reflected in their shipments, leading to unrecorded sales without receipts.

This issue can be addressed by placing honest tax officials in the field instead of confining them to offices. In large city marketplaces, merchants often conceal goods when a police officer is present, as smaller traders act as intermediaries for larger businesses, selling goods without authorized receipts and evading taxes.

In the case of Manipur, you will find many small traders rightfully displaying clothing/garments, electronic items/gadgets, food items etc., on the footpath but none of the police or the tax officials arrested them nor levied fines. If one seller sold goods worth 5000 rupees in a day, at least a tax of Rs 900 fails to come to the Government. Hundreds of sellers are seen daily, more so on Sundays in Imphal city.

If we take the number as only 500 sellers, the total amount of Rs 4,50,000 is not reaching the Government every day. The money receivable from sales proceeds of such tax amount in a month (Rs 1.35 crore) can meet the salaries of an office having 135 staff on average monthly salaries of one lakh rupees. Moreover, bringing more units in the consignment than recorded in the e-way bill can be detected.

The Manipur Government collects a maximum professional tax of Rs 2,500 per year, payable in 10 monthly installments, from individuals earning over Rs 20,000 monthly, similar to other States. Currently, this tax is predominantly collected from State and Central Govt employees, excluding para-military forces.

Numerous professionals, including contrac- tors, lawyers, doctors, private hospital staff, mechanics, transporters, private security providers, and artists, earn more than Rs 20,000 monthly and need to be identified. The Government should take effective measures to recognize these self-employed individuals, possibly by issuing orders and involving law enforcement agencies.

Assistance from knowledgeable personnel may be required if staffing is insufficient. While some actions have been taken, they have not been effective. With proper implementation, the Government could significantly increase annual revenue in terms of crores of rupees.

There are some guest houses inside and outside of the State. The room rents of the said houses have not been revised for the last 10 years or more. Such houses, though meant for the patients, students and poor, cannot stay there; it is meant for the rich and men in power. This is also a corner to see for revision of rates of rents to add to the State’s income.

The status of the public utility concerns such as Electricity Department and Water Supply Department; Municipal Councils and Corporations are another angle to see as to how incomes should exceed the expenditure. As we know, after the Electricity Department became companies, the performance of the staff and the services provided improved appreciably.

At the same time the Public Health Engineering Department which has its own infrastructure should be changed to Living Corporation or company as is seen in many States. Private water tanker owners, when I asked to the owners if their works for providing drinking water to the households are profitable, they said that one pre-owned water tanker of 12000 liters capacity costing Rs 6 to 7 lakh can earn Rs 5000 daily after meeting fuel cost, drivers salaries. In such condition, privatization of Water Supply Department will be profitable and ease the expenditure of the Government.

The drains along-sides of lanes in the jurisdictions of Municipal Councils and Corporations are used by the locals without paying fees, however, the Government is incurring a lot of grants in siltation and maintenance of such drains. A monthly user charges, which is also mandatory, should be levied on every household, so that regular maintenance to keep the drains and lanes neat and clean, and will minimize the expenditure in giving grants by the Government.

The Government is having many employees without taking proper attention of the works assigned. This is the source of corruption and quest of Government job. Why people hanker after Govt job in Manipur is due to the following factors that they will get salary even if they arrive office late and depart early or even when the employees themselves are absent at par with employees attending and departing office in timely manner and performing the assigned duties diligently.

Delay in file works is another means of getting touts. The officials should be attending and departing in time; before their departure, a daily performance report containing the following information should be submitted to the HoO/HoD describing how many words they have typed/letters received and disposed of/files attended/drafts submitted/ have been received/done, and how many have been responded giving reason for pending if any.

Salary should be based on biometric working hours of attendance. In every office, if such routine is maintained without fail, people will not like to be government employees. Moreover, the issue of accountability within Government Departments cannot be overlooked.

There must be a stringent mechanism in place to monitor the performance of employees and the effectiveness of the policies being implemented. Regular audits and assessments should be conducted to ensure that the funds allocated for various projects are being utilized appropriately. This will not only deter corruption but also promote a culture of transparency and responsibility among government officials.

The use of technology in governance can greatly improve efficiency. E-gover- nance initiatives simplify processes, reduce paperwork, and decrease opportu- nities for corruption. For example, digital tax filing and payments enhance tax collection, making evasion more difficult and allowing for better financial planning.

Educating the public about tax rights and responsibilities is also important. Campaigns that raise awareness of tax compliance help cultivate civic duty. When citizens see how their taxes benefit public services, they are more likely to comply and hold businesses accountable.

Supporting small and medium enterprises (SMEs) is crucial as well. The Government should foster a supportive environment through tax incentives and grants, promoting entrepreneurship, innovation, and job creation. Providing access to finance and training can further empower SMEs.

Additionally, enforcing labor rights and workplace standards is essential. Effective enforcement of labor laws ensures fair treatment and safety for workers, leading to a motivated workforce and enhanced productivity.

In summary, to increase Manipur’s income, a comprehensive approach is essential, focusing on resource mobilization, law enforcement, technology adoption, public awareness, SME support, and protection of labour rights. The Govt must foster a business-friendly environment and ethical practices to boost economic growth and enhance quality of life.

Ensuring that resource-generating departments operate smoothly is crucial to avoid disruptions, which can lead to significant asset losses, disturbances in citizens' lives, hindrances to development, loss of life, and costly rehabilitation efforts for displaced individuals.

The current situation in Manipur illustrates the consequences of neglecting law and order at the right time, as highlighted by the CM that the incident involving the burning of the open gym on April 27, 2023 was the precendence of the 3rd May 2023 violence.