Bengaluru, Jul 20 (PTI) The Commercial Taxes Department in Karnataka has launched a dedicated helpline to combat corruption and take strict action against erring staff, particularly in response to complaints about bribe demands related to UPI-linked matters.

The department, in an official statement on Sunday, said it had received information from the media and other sources that certain officers and staff had allegedly "demanded bribes" in connection with UPI-related issues.

It also noted that a few middlemen were demanding money from traders under the "pretext of offering assistance" in such cases.

Taking serious note of the matter, the department reiterated its zero-tolerance policy towards corruption and assured that strict action would be taken against any officials or staff found guilty.

Traders have been urged to report such incidents immediately by contacting the department’s helpline at 1800 425 6300, available from 8 am to 8 pm on working days.

Karnataka Chief Minister Siddaramaiah said discussions would be held with the central government and the state's Commercial Taxes Department to arrive at an appropriate decision regarding the tax notices issued to small traders. His statement came in response to reports that many small traders are increasingly switching to cash transactions instead of using UPI, allegedly due to the notices served by the department.

He clarified that GST is a central government initiative.

"The GST Council functions under the purview of the central government, not the state government. So, how is the state government responsible for it," Siddaramaiah told reporters in Mysuru.

"We will speak to the Government of India. If there's anything related to the Commercial Taxes Department, we will discuss and take a decision," he added.

It is also learnt that traders are uniting against UPI and are planning a protest on July 25.

He reiterated that the "state government is not responsible for these developments." Deputy Chief Minister D K Shivakumar also held the BJP-led central government accountable, saying it was responsible for introducing GST and the "challenges faced by small traders and street vendors." Speaking at an event organised to distribute government benefits, Shivakumar claimed that notices were being issued to those doing business of over Rs 40 lakh, including tender coconut sellers and vegetable vendors.

"This is the achievement of the union government," he alleged, assuring traders that they need not worry as the state would take necessary steps to protect their interests. PTI GMS SSK SA

Anti-corruption helpline established for reporting bribe demands in tax administration tied to digital payments compliance. The Commercial Taxes Department in Karnataka has established a dedicated helpline and reporting mechanism to address allegations of departmental staff soliciting payments and middlemen extorting traders in UPI-related tax matters; the department affirmed a zero-tolerance policy, pledged strict disciplinary action on substantiated complaints, and urged traders to report incidents through the helpline during specified hours.