Kozhikode: Kerala will make e-filing of sales tax returns compulsory from next fiscal, Finance Minister Thomas Isaac said Saturday.

"From this December, traders will have the option to e-file their returns. However, from next financial year e-filing will be made compulsory," he told reporters here on the sidelines of a meeting of tax officials.

Isaac said since only a few traders have computers for e-filing of returns, the government would make arrangements at the Akshaya centres to facilitate e-filing.

Akshaya centres are e-kiosks run by private entrepreneurs, which have state-wide reach.

"We will provide traders with the list of accredited Akshaya centres where they can submit all their papers. These centres will do all data entry and will submit the returns to the tax department," he said.

The government will provide compensation to Akshaya centres for filing tax returns.

Every year, a total of around 150,000 returns are filed in the state and this will provide an income generating opportunity to the Akshaya centres.

The minister said commercial taxes department will soon overhaul all its information system. "The income tax collection of the central government is going up because they have a perfect information system," he said.

The Kerala government is expecting 20-25 percent increase in tax revenues this year.

The revamped information system is expected to further improve the tax collection next year.

"When the term of this government ends, the state's tax revenues will go up by one-and-a-half times," Isaac added.