Ruchika M Khanna
Tribune News Service
Chandigarh, September 7
Showing signs of recovery post the Covid-induced economic meltdown, Punjab’s tax revenue is on the rise.
Vat on fuel, rise in GST share fill kitty
- Rs6,534.50 crore GST collections registered this fiscal so far, up from Rs3,630.48 crore between April and August last year
- Rs3,394.73 crore earned as VAT on fuel sale between April-August. It was Rs1,981 crore in the same period in the last financial year
- Rs2,358.41 crore collected as excise tax in the first five months. Rs1,968 crore was collected in the corresponding period last year
Better compliance has helped
Better tax compliance and plugging the gaps in tax collections have helped the state increase its revenue. — A Venu Prasad, Additional Chief Secretary, Taxation
The state’s revenue receipts from VAT, excise and sales tax and Punjab State Development Tax in the first five months of the current fiscal have seen a jump of 71 per cent over the corresponding period of the last year. Even though there was a complete lockdown for almost two months (March end to mid-May) last year, the state’s income in the corresponding period over the one of 2019 was up by over 50 per cent.
The increase in revenue comes amid the state’s reliance on the Centre for grants in aid and fiscal packages for years. The sudden rise in the state’s income, however, has come mostly at the cost of the common man. With the prices of retail fuel increasing by Rs 30 in the past one year, the VAT that the state earns on the fuel sale has kept the states cash registers ringing. Between April-August this year, the state earned Rs 3,394.73 crore as VAT, compared to Rs 1,981 crore earned in the corresponding period last year. In the same period in 2019, the VAT collected was Rs 2,345 crore. The
reason for the high increase in VAT collection is that for every Re 1 per litre increase in the price of fuel, the state’s tax collection goes up by 30 paisa.
The GST collections are also up from Rs 3,630.48 crore last year between April to August to Rs 6,534.50 crore from April to August this year. In the corresponding period of 2019, the GST collection was Rs 4,883.54 crore.
This year, though there is not much change in the collection of Punjab State Development Tax, the excise collections have increased substantially. As against Rs 1,968 crore collected last year in the first five months, the collections are up to Rs 2,358.41 crore this year. In the same period of 2019, it was Rs 1,912.32 crore.
Tax revenue increases by 71% this fiscal
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