Tamil Nadu has constituted a Revenue Augmentation Committee under the chairmanship of Montek Singh Ahluwalia to strengthen the State's revenue base.
The committee will recommend measures to increase tax and non-tax revenues, improve tax compliance, plug leakages, rationalise tax rates and fees, and identify new revenue sources.
It will also examine non-tax revenues such as Public Sector Undertaking (PSU) dividends, land and asset monetisation, and improved user charges.
The committee will recommend measures to curb tax evasion, improve revenue administration through technology, and enhance revenue from alcohol taxation.
The committee will function for three months to help strengthen Tamil Nadu's fiscal self-reliance and support its development commitments.