VAT gross up 41% till July

CHANDIGARH: Value added tax (VAT) collections in Punjab have shown an unprecedented buoyancy of over 40 percent during the first four months of the year and are expected to meet the projected target during the current fiscal. Against collections of Rs 1,677 crore last year till July the proceeds during the same period this year were Rs 2,373.21, posting a whopping increase of 41.49 per cent.
Since this figure includes central sales tax collections for which the rate was slashed by 1%, the spurt in VAT revenues is far more credible. In fact, the actual increase was 43.7% but it was depressed because of a 19% shortfall in CST collections after the rate cut.
Excise & taxation commissioner Venu Prasad attributed the burgeoning collections to registration of over 15,000 more traders under VAT during the current fiscal, besides improvement in VAT billing and sustained efforts in ensuring compliance.
Equally significant was the massive returns from purchase of foodgrains as not only was the minimum support price substantially higher this year but even the quantum of procurement from the state rose by over 2 million metric tonnes.
Also, revenues from stamp and registration duties jumped by over 25% till July compared to the corresponding period last year. However , it suggests a turnaround in the estate business in the state.
Proceeds from stamp and registration duties rose from Rs 548.34 crore for the first four months of last fiscal to Rs 686.69 crore for the same period this year. Already, over onethird of the budget estimates for this fiscal has been realized in stamp and registration duties , indicating the buoyancy is on expected lines.
Excise revenues too are on expected lines with 33%of the budget estimates having already been realised. However, collections are down by over Rs 120 crore as proceeds from vend auctions last March were lower. Collections from taxes on vehicles have registered 9% rise so far this year.