The Hindu Business Line : Kerala expects 17% rise in tax revenue

Tax collections
Commercial taxes collected till Jan 31 were Rs 7,392.64 cr, against targeted Rs 10,035.51 cr for 2007-08
Excise taxes till Jan 31 were Rs 796.98 cr, against targeted Rs 986.86 cr.

Our Bureau

Thiruvananthapuram, Feb. 28 The Kerala Government is expecting an increase of 17 per cent in tax revenue in 2007-08 over the previous year, according to the Finance Minister, Dr Thomas Isaac.

Replying to questions in the State Assembly on Thursday, the Minister said that the tax receipts till December 2007 were Rs 9,303.49 crore. He said that the Commercial Taxes Department collection till January 31, 2008, was Rs 7,392.64 crore, as against a target of Rs 10,035.51 crore for the whole year. Similarly, an amount of Rs 796.98 crore had been collected by the Excise Department against the target of Rs 986.86 crore.

In reply to a question, the Minister said that the Government had to collect arrears amounting to Rs 4,304.69 crore under the heads of sales tax and VAT till January 31. In the circumstances, sales tax officers, including deputy commissioners, in all districts had been directed to intensify collection of arrears.

Since the implementation of VAT, the State had received Rs 882.70 crore as compensation from the Centre. The compensation is allowed on the basis of total tax collection as at the end of the financial year.

As per interim estimates, the State had taken ways and means advances of Rs 1,545. 70 crore till January 31, 2008. Besides, the Government was in overdraft for 42 days during the period.

The Minister told the House that the State intended to modernise all the commercial tax check-posts. As the first phase, steps had been initiated to modernise the check-post in the Palakkad district. At Walayar, more counters were opened and the check-post had been linked with main tax offices through a computer network. Also, land acquisition for establishing an integrated check-post at Walayar was at an advanced stage, he said.

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