VAT collection rises by 21% in Maharashtra

Although Maharashtra achieved an impressive 21 per cent growth in the first half of the current financial year in collection of value-added tax (VAT), the state government feels the second half of the current fiscal is likely to be a difficult one and economic slowdown may affect overall collection.

During the first half of the current financial year, the Maharashtra government collected Rs 20,435 crore by way of VAT, which is 21 per cent higher than last year during same period. During this fiscal, target for collection of VAT is around Rs 33,000 crore. And during financial year 2007-08, the state had collected a little over Rs 31,000 crore by way of VAT.

Economic downturn will definitely affect overall collections, but by how much will be known only after end of third quarter, said State Finance Minister Jayant Patil.

The figures of advance tax, central exise and customs are definitely showing downturn and perhaps the reason behind the impressive performance is the steps taken by us to stop leakages in our system, said senior official from state government VAT commissionerate.

Source : The Business Standard, India, dated 11/11/2008