When finance minister Asim Dasgupta took pioneering decision to abolish entry tax, in his 1995-96 budget, he had plans of setting up a state-level directorate of revenue intelligence (DRI). But, despite repeated assurances by the minister himself, the government has merely issued a few notifications so far. Going by a conservative base salary of Rs 4000 per month, the directorate's wage-bill alone should be around Rs 7 crore a year.

Entry tax director NC Dey, when contacted by The Financial Express, refused to comment. Dey is also the director of the DRI on paper.

On April 1, 1995, when Dasgupta abolished entry tax, he had planned to set up a new department to absorb the employees made redundant.However, although the entry tax directorate had no work left except for settlement of pending cases, the 1850-strong workforce at that time was neither transferred nor given any alternative assignment. The finance department's taxation wing, in its order (No. 2064-F.T.) dated July 14, 1995, stated: "... In order to complete such pending work it is considered that the Directorate of Entry Taxes, West Bengal under the administrative control of this department should continue to function for certain periods, and until further orders."On the same day, the finance department notified the setting up of a state-level DRI.

Set up in 1970 as an extra-temporary department under the taxation wing of the finance department, the entry taxes directorate was classified as a temporary department in 1975 and remained so till the abolition of entry tax.The abolition took the employees by surprise since chief minister Jyoti Basu had headed a 1994 committee that was against it. Other states like Haryana, Gujarat, Maharashtra,Orissa, and Bihar continued with the system.The total collection of this department in 1994-95 was around Rs 250 crore, out of which the 20 per cent was used as overheads while the rest went to the state exchequer. The finance department notification (No. 2062-F.T.) announcing the creation of the DRI, had said: "...The said directorate shall have jurisdiction all over the state of West Bengal in the matter of collection, compilation and analysis of various data from Banks, Financial Institutions, Railways, Ports, Airports, Government Offices, Government Undertakings, Local Bodies, Statutory Bodies, Municipalities, Corporations and like institutions..." It was notified that the director of entry taxes will simultaneously hold the post of the director of revenue intelligence.According to sources in the entry tax department, the notification does not define the scope and nature of activities of the DRI.They pointed out that banks, financial institutions, railways or any other bodies are unlikely to co-operatewith them since, under the law, there is no scope for such inspection by a state-level body like the DRI.Also, the DRI staff may face opposition from the commercial tax department in areas where they have to work jointly.