Bhubaneswar, June 27: An expert committee, headed by former state election commissioner Sanjib Chandra Hota, today suggested the Orissa government a slew of measures to enhance the state's own resources.

The Hota Committee, in its report submitted to finance minister Prafulla Chandra Ghadai, suggested to the government to conduct a survey in the upcoming industrial hubs near Rourkela, Jharsuguda, Sambalpur, Jajpur Road (Kalinga Nagar) and Angul to open new liquor shops.

It also recommended introduction of a progressive license fee for all distilleries and breweries, higher rate of license fee for higher production capacity and penalty for non-utilisation. “The excise shops need be auctioned at least once at an interval of three years with annual increase of 20 per cent till the next auction. Similarly, out-stilled shops are to be auctioned once in three years with annual increase of 20 per cent of license fees,” the report states.

The committee was constituted on March 25 last year, taking Dr Pulin B. Nayak, professor, Delhi School of Economics, Dr Tapas Kumar Sen, professor, National Institute of Public Finance and Policy and B.C. Mohapatra, additional secretary (resources) of the state finance department as its members.

In its report, the committee has laid emphasis on strengthening tax administration, broadening the revenue base, rationalisation of tax rates and better surveillance through greater use of IT base tools to minimise leakage.

In its report, the committee suggested that government should get prepared for the eventual introduction of GST (Good and Service Tax) and raise the lower rate of VAT (Value Added Tax) from four per cent to five per cent. The committee argues for setting up of a separate wing to deal with the professional tax administration and a need for legal requirement of furnishing an annual return to be imposed on all employees.