Fuel, liquor VAT boost state’s tax collections
73% of commercial tax target achieved in first 8 months
The state government is upbeat over robust commercial tax collections in the current fiscal 2021-22. Commercial taxes remain the major revenue generation source for the state government and contribute about 70 per cent of its total revenue earnings.
The data obtained from the commercial taxes department shows that the state government has already realised 73 per cent of the targeted commercial tax collections in the Budget 2021-22 in the first eight months of this fiscal itself (AprilNovember) on the back of higher VAT collections on petroleum products and liquor. The government
● THE DATA obtained from the commercial taxes department shows that the state government has already realised 73 per cent of the targeted commercial tax collections in the Budget 202122 in the first eight months of this fiscal itself (April- November) on the back of higher VAT collections on petroleum products and liquor.
● THE GOVERNMENT has set itself a target to achieve `57,500 crore collection through commercial taxes. Of this, it earned `42,159 crore by November 30.
has set itself a target to achieve `57,500 crore collection through commercial taxes. Of this, it earned `42,159 crore by November 30, amounting to 73 per cent of the targeted collection.
With four more months (December-March) to go for the current fiscal year to end, the government hopes to surpass the budgetary target on commercial tax collections. The data shows that in the previous fiscal (2020-21), the government clocked
`29,722 crore collection from March-November, which has now shot up to
`42,159 crore, a significant increase by 42 per cent.
The higher petrol and diesel prices last year besides increased liquor prices this year contributed to higher tax collections in the form of VAT.
The VAT on fuel and liquor alone contributed
`8,602 crore and `8,566 crore respectively to the state exchequer.
The other major contributors include SGST at
`9,222 crore, IGST `8,882 crore, IGST settlement
`482 crore, GST compensation `5,961 crore and others `444 crore.
All these tax components witnessed significant increase in the same period last year when VAT on fuel and liquor fetched
`4,763 crore and `7,070 crore respectively, while SGST contributed `6,817 crore, IGST `6,203 crore, IGST settlement `2,638 crore, GST compensation
`1,726 crore and others
`505 crore.
The tax collections were impacted between April to June when there were lockdowns and business restrictions due to Covid second wave but recovered from July.