The Hindu Business Line : `VAT pushes up Haryana revenue collections by 43 pc'

THE implementation of the value-added-tax (VAT) regime by the Haryana Government has given the State 43 per cent additional revenue in the last fiscal. The State's revenues have gone up to Rs 4,778 crore in 2004-05 from Rs 3,346 crore in the fiscal 2003-04.

According to the Associated Chambers of Commerce and Industry (ASSOCHAM), these revelations were made by the Haryana Finance Minister, Mr Birender Singh while having interactions with senior members of the Chamber.

Mr Singh said that the Haryana experience should be emulated by those states that are resisting VAT's implementation, an ASSOCHAM release stated. "Our experience has been that ever since Haryana adopted VAT, not only its tax collections have gone up but also the retail prices of essential commodities like grains, pulses, fruits and vegetables, electrical appliances, consumer goods have remained stable compared to those that prevailed in states like Delhi, Punjab and the likes during 2004-05."

Comparing the growth of the State's economy with that of the national economy after the State adopted VAT, Mr Singh said, "While the growth rate of the nation's economy in 2003-04 was 8.4 per cent, in 2004-05 it is estimated at 6.9 per cent. In comparison the gross state domestic product of Haryana recorded a growth of 8.6 per cent in 2003-04, which is almost the same as the national average but the growth rate in the manufacturing sector at 7.5 per cent was higher than the national average at 6.6 per cent. In 2004-05, the State economy is estimated to record a growth of 8.5 per cent, which is about 2 per cent higher than the estimate for the national average

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