Is Delhi Leading India’s Tax Evasion Crisis?

New Delhi, February 20, 2024: In a shocking revelation, VK Saxena, the Lieutenant Governor (LG) of Delhi, has brought to light that Delhi, the national capital, holds the dubious record of the highest tax evasion among all states and Union Territories in India.

In a letter addressed to Delhi’s Chief Minister, Arvind Kejriwal, LG Saxena unveiled the worrying state of tax governance in the city. “Delhi has achieved the unfortunate distinction of recording the highest tax evasion in the country,” the Lieutenant Governor’s letter stated.

The LG further shared alarming statistics – a staggering 483 fake firms have been identified, contributing to a massive tax evasion of Rs. 3,028 crore. To put this into context, Delhi’s tax evasion surpasses by Rs 827 crore the state ranked second in this infamous list.

Moreover, Saxena hinted at the potential involvement of officials from the local GST Department in these wrongdoings. He called upon Kejriwal to launch a thorough investigation into the matter, led by Finance Minister Nirmala Sitharaman, to uncover the root cause of such widespread tax evasion.

The fact that the national capital tops the chart of tax evasion among all states and Union Territories is indeed disturbing. Saxena asserted that this indicates a poor state of tax governance in the city, seriously eroding the public’s trust in the system.

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