Raids were required to ensure traders’ compliance with tax as well as other laws. However, it has become a tool of harassment at the hands of official. Aam Aadmi Party led government hasn’t raided the traders since it has come to power. However, it has instituted several mechanisms to ensure compliance.
- In May 2016, Delhi government’s Trades and Tax department launched online application – DVAT MSewa App , as part of its mobile governance initiatives, to do away with the physical visit of VAT inspector for the verification of business premises, which previously used to take a lot of time.
- With this mobile application in place, businessmen can register himself with the VAT Department in a single day, without any difficulty and harassment. Apart from above, the department can also check the addresses of the bogus firms and can find out the details of numerous firms running at single address.
- AAP led Delhi government has dedicated helpline numbers (155055, 1800110066) in case of any trader being inspected or if the trader needs to clarify the identity or authenticity of any VAT official, he/she may ask for his authorization letter and in case of any clarification may call dedicated helpline numbers.
- Additionally, since the VAT raids and inspector raid raj have been done away with, Trade and Tax Department has launched a number of schemes such as Bill Banvao Inam Pao and Market Association reward Scheme to increase self-compliance among traders and consequently increase the revenue for the Government.
- The government had taken various initiatives like abolition of certain affidavits, promoting self declaration, and single window clearance among many. These efforts were part of the much required reforms to improve the “Ease of Doing Business” rankings in the city.