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Just
three days before Chandigarh is to host a meeting of
empowered committee of state finance ministers under the
chairmanship of Asim K Dasgupta, finance minister, West
Bengal, Punjab chief minister, Parkash Singh Badal on
Friday claimed that "in the first six months of
2008-09, Punjab has achieved a 38.9% increase in VAT
collection". He claimed that with this growth rate in
VAT, Punjab had emerged at third spot in the country.
Badal
claimed that "Punjab had created a record on the path
of progress and development as unprecedented growth in VAT
collection was concerned" Elaborating the point,
Badal said actual VAT collection in year 2006-07 was Rs
4778.69 crore, which was just 11.4% more than the
collection in 2005-06 or in value terms it was Rs 488.38
crore more than the previous year. At that rate, Punjab
stood at 24th spot. However, during the tenure of present
government, the VAT collections jumped to Rs 6643.48 crore
in 2007-08 which was Rs 764.80 crore more than the
collections under this head in 2006-07 or 16 %. With this
growth, Punjab managed to reach 9th spot.
However,
a turnaround was witnessed in the first six months of
2008-09 when VAT collections went up to Rs 3330.82 crore
in six months, which was Rs 933.65 crore more than the
collections during the same period last year or 38.9 %
more than the same period last year. With this
unprecedented growth, Punjab has climbed the ladder of
growth and reached third spot in VAT collection.
Interestingly,
the Punjab government had projected a figure of Rs 6,290
crore for the year 2008-09 as far as VAT collections are
concerned, which was 20 % above the VAT collections in
2007-08. However, actual growth was much above the
projected figure and if this trend continues, Punjab may
become the front-runner state in terms of VAT collection
as neighbouring Haryana has projected a growth of 21% for
2008-09.
The
excise department sources told FE that registration of
more than 15,000 more traders under VAT during the current
fiscal, besides improvement in VAT billing and sustained
efforts in ensuring compliance did the trick. Another
factor that led to buoyancy in VAT was the fact that the
Punjab government ruled out reduction in VAT on petrol and
diesel, which is at present 27.5% and 8% respectively and
highest among all the northern states. In fact, in the
state capital Chandigarh, the VAT on petrol is 22 %. A
major portion of VAT in Punjab comes from petroleum
products and last year, of total VAT collections, VAT from
petrol only accounted for Rs 1,239 crore, agriculture
accounted for Rs 592 crore, liquor Rs 24 crore,
automobiles Rs 497 crore and other services Rs 2,317
crore.
Meanwhile,
it is learnt that alongside the meeting of the empowered
committee of state finance ministers, principal
secretaries and secretaries (finance and taxation) and
commissioner of trade taxation would also be held to
deliberate latest position of VAT revenue and VAT and CST
compensation, references received from the Centre. The
views of the Centre on the GST model and roadmap (if
received by then), the latest position of issue of C form,
reference received from government of India and progress
made in the implementation of TINXSYS is likely to be
discussed in the meeting.
Source
: Financial Express - Bombay, India, dated 31/10/2008
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