In view of state losing several crores of rupees due to alleged tax evasion by retailers of tobacco products, the Tamil Nadu government has proposed implementing a rigorous procedure from February 25 to ensure that the dealers have valid invoices for their goods.

Accordingly, the retailers (of tobacco products) should compulsorily possess valid invoices for the stocks of tobacco products, a release from the state Commercial Taxes department said.

The commercial taxes department will seek the support of health, police and revenue departments “to have a combined action to inspect the retail traders”, it said.

Action will be taken against the retailers, if gutkha or pan masala are found to be in their possession without valid invoices, the release added.

In a recent inspection carried by the Commercial Taxes department across Tamil Nadu, the release said, Rs 6.86 crore worth of tobacco products (without invoices) were seized and Rs two crore was collected as penalty from retailers.

Tobacco products in Tamil Nadu are taxable at 20 per cent with effect from July 2011. The tax paid by retailers of gutkha and pan masala for 2011-12 was Rs 14.49 crore.

For the period up to December 2012, the revenue collected was Rs 27.63 crore, the release added.

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