The Hindu Business Line : Revenues up 16 pc in 21 VAT-implementing States

TAX revenues of 21 VAT-implementing States and Union Territories (UTs) have cumulatively recorded nearly 16 per cent increase during the first five months of the current fiscal.

According to the provisional figures compiled by the Finance Ministry, the revenues of these States and UTs (for which provisional data is available) increased to about Rs 29,878 crore during April-August compared to Rs 25,824 crore in the same period last year.

The growth in tax revenues of 23 VAT implementing States/UTs for April-June 2005 was around 15.3 per cent at Rs 14,050 crore.

Although the growth rates continue to be maintained around the 15-16 per cent levels, Finance Ministry officials said that it would not be proper to hazard a guess or come to any conclusion about the effect of VAT on tax revenues of the States.

One of the problems faced by a number of States is the absence of efficient data collection systems to accurately quantify the revenues emanating from pure VAT items.

"They (States) are working on it (ensuring better data collection)", official sources said, adding that there are a number of factors behind tax collections, including efficiency of tax administration, etc.

While States like Karnataka, Punjab, and Delhi continue to record strong growth (over 25 per cent) in tax revenues in the VAT regime, Andhra Pradesh has started to show improvement in tax revenues, going by its performance in August 2005.

In August, Andhra Pradesh, whose overall growth so far has been modest at around 10 per cent, is understood to have recorded tax revenue growth rate of about 18 per cent.

Meanwhile, Maharashtra is understood to have furnished to the Finance Ministry the details and certificates required in support of its VAT compensation claim of Rs 259 crore for the April-June 2005 period.

Sources said that Maharashtra had not submitted the required Accountant-General's certificate in support of the claim.

Further, the Centre had also noticed certain statements were not filed in the prescribed proforma and therefore, had to be re-submitted.

The Centre had asked Maharashtra and three other States (Kerala, Karnataka, and Assam) to come up with more details in support of their VAT compensation claims for the shortfall in tax revenues on account of VAT implementation.

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