The Hindu Business Line : Tax revenues of VAT States rise 23.41% in April-Jan

New Delhi March 16 Tax revenues of the 31 VAT-implementing States have recorded a 23.41 per cent increase during April-January 2007 to Rs 1,09,095 crore compared with the collection level of Rs 88,403 crore during the same period of the previous year.

This represents a slight decline to the hitherto recorded growth rates of 24-25 per cent so far during this fiscal. Official sources attributed the slight slowdown in the growth rates in collection to the inclusion of Tamil Nadu under the VAT-implementing States category from January 1.

Growth Moderation

"Tamil Nadu (with growth rates of about 18 per cent) has in a way pulled down the overall growth rate as its growth rate is lower than the national average. As Tamil Nadu has a large revenue base, its inclusion had an impact. However, the overall trend is intact," sources said.

The Finance Ministry expects further moderation in growth rates in February and March, when refund issues crop up. "The overall tax collection growth rate of the VAT implementing States is unlikely to fall below 20 per cent this fiscal," sources said.

The tax revenues of some of the major VAT implementing States during April-January 2007 are Andhra Pradesh Rs 12,357 crore (Rs 9,725 crore); Gujarat Rs 9,330 crore (Rs 7,030 crore), Delhi Rs 5,458 crore (Rs 4,682 crore), Rajasthan Rs 4,930 crore (Rs 4,067 crore), Haryana Rs 4,419 crore (Rs 3,653 crore), Karnataka Rs 8,348 crore (Rs 6,566 crore), Maharashtra Rs 18,841 crore (Rs 15,001 crore), Tamil Nadu Rs 13,232 crore (Rs 11,138 crore) and Kerala Rs 6,714 crore (Rs 5,406 crore).

As regards the non-VAT implementing States, the tax revenues of Uttar Pradesh for the period under review stood at Rs 10,057 crore (Rs 7,972 crore). Tax revenue of Puducherry during April-January 2007 stood at Rs 303 crore (Rs 250 crore).