During 2004-05, 2005-06 and 2006-07 — the three years preceding VAT — the commercial tax collection stood at Rs 8,838 crore, Rs 11,285 crore and Rs 13,279 crore respectively. This way, the growth rate in individual years was 15.67 per cent, 26.96 per cent and 17.67 per cent respectively.

Although, tax collection under VAT years grew in absolute terms, the average growth rate has been lower.

During 2007-08, 2008-09 and 2009-10, the commercial tax revenue returned figures of Rs 15,023 crore, Rs 17,482 crore and Rs 20,825 crore growing by 13.14 per cent, 16.37 per cent and 19.12 per cent respectively.

Actual collections under VAT were also lower compared to respective budgetary projections for 2007-08 and 2008-09, while during 2009-10, it was higher by about Rs 85 crore.

In its latest report about revenue receipts in UP, which was tabled in the state Assembly recently, Comptroller and Auditor General (CAG) of India pointed out that the revenue growth remained below 20 per cent under VAT, while it had breached 25 per cent during 2005-06.

On a query of October 2010, the state informed the CAG about having exempted 200 items of common use from VAT. Besides, several other items were put under 4 per cent tax slab, which earlier attracted tax of 6-8 per cent.

Additionally, the downward revision in central sales tax (CST) from 4 to 3 per cent and later to 2 per cent after implementation of VAT reflected in the net revenue receipts.

During 2010-11, commercial tax revenue stood at about Rs 25,000 crore, growing by over 20 per cent.