Bihar Government has decided to make compulsory for the traders for online payment of taxes and filing return from the current fiscal, Deputy Chief Minister, Sushil Kumar Modi said today.

"All traders in Bihar must compulsorily register themselves online with the commercial taxes department in the next couple of months for filing of their annual returns," Modi, also the state's finance minister, told reporters.

He said that the online registration and payment had been made compulsory in order to generate revenue by plugging various loopholes in the system.

Modi said that the state government would felicitate the traders paying higher commercial tax, besides arranging an insurance policy of Rs two lakh for all traders.

He said there would be reward and punishment system for the commerial tax officials too with those meeting their target would be rewarded with foreign jaunts, while non-performing officials will be punished suitably.

He said the state exchequer had set the annual revenue collection this fiscal higher by 33.06 per cent at Rs 7362.31 crore.

The tax collection from VAT too had increased by over 25 per cent last fiscal which was seven to ten per cent more than the developed states in the southern region of the country.

The overall generation of internal resources had been set at Rs 20000 crore this fiscal, higher by over 40 per cent compared to last year, he said.