The Hindu Business Line : Tax revenues of VAT States rise 15.35 pc in April-Feb

The tax revenues of VAT (value-added tax) implementing States have risen 15.35 per cent during the first eleven months of fiscal 2005-06 to touch Rs 67,834 crore against Rs 58,807 crore recorded in the same period the previous year.

Although the tax revenue growth of the 25 VAT-implementing States taken together has settled at 15-16 per cent since the new tax system was implemented, official sources pointed out that there was huge variation in growth rates within the universe of these States.

It was also highlighted that the comparative base has been different for 2004-05 (sales tax) and 2005-06 (VAT). "This year (2006-07), we can look forward to better comparison as the base for 2006-07 and 2005-06 would be the same", sources said.

With the five BJP-ruled States adopting VAT from April 1, 2006, 30 States and Union Territories have so far adopted State-level VAT.

Tax revenues of some of the major VAT implementing States during April-February 2005-06 are Delhi: Rs 5,123 crore (Rs 3,765 crore), Maharashtra: Rs 16,826 crore (Rs 15,016 crore), Haryana: Rs 4,047 crore (Rs 3,453 crore), Kerala: Rs 5,999 crore (Rs 5,552 crore), Karnataka: Rs 7,283 crore (Rs 6,709 crore), Punjab: Rs 3,983 crore (Rs 3,057 crore), Andhra Pradesh: Rs 10,912 crore (Rs 9,532 crore) and West Bengal: Rs 4,482 crore (Rs 4,094 crore).

Meanwhile, the working group set up to work out the modalities of compensation for an appropriate phasing out of Central Sales Tax (CST) met for the first time here on Monday. Indications are that there would be another round of discussions in the third week of this month before a formal recommendation is made on this issue.