The Hindu Business Line
At ₹3.52-lakh crore, Mumbai tops in tax collection for FY19
Mumbai has once again emerged as the top contributor to the exchequer and accounted for 32 per cent of the overall tax collection in the financial year ended March.
Shrugging aside concern over slower economic growth, the cumulative tax remittance under various heads, including corporate tax, income tax, fringe benefit tax and securities transaction tax, was up 17 per cent in FY19 at ₹10.95 lakh crore against ₹9.36 lakh crore logged in FY18. But this is lower than the targeted amount.
Incidentally, Mumbai chipped in close to one-third of the overall tax collection and its remittance was up 17 per cent in FY19 at ₹3.52 lakh crore (₹3 lakh crore).
Delhi ranked a poor second with overall tax collection of ₹1.60 lakh crore (₹1.29 lakh crore), though it registered a growth of 25 per cent while Bengaluru’s contribution was up 18 per cent at ₹1.19 lakh crore (₹1.02 lakh crore). Chennai paid tax of ₹74,000 crore (₹66,000 crore), an increase of 12 per cent.
The top four cities’ collection at ₹7.05 lakh crore (₹5.94 lakh crore) last fiscal accounted for 64 per cent of the overall remittance across India.
Despite export growth slowing due to the ongoing global trade war, the buoyant domestic demand and low inflation have helped corporates post better financial performance and pay more tax.
Corporate tax up
The tax paid by corporates in Mumbai at ₹2.36 lakh crore accounted for 36 per cent of overall corporate tax collection of ₹6.50 lakh crore. Remittance of tax by Delhi corporates more than doubled to ₹1.07 lakh crore (₹52,700 crore) while that of Bengaluru and Chennai was up at ₹64,100 crore (₹55,200 crore) and ₹43,100 crore (₹30,900 crore).
Income tax remitted in Mumbai at ₹1.04 lakh crore accounted for a major chunk of overall collection at ₹4.32 lakh crore. Similarly, the securities transaction tax paid in the city at ₹11,500 crore was almost equivalent to overall tax collected under this head at ₹11,525 crore.