National

Karnataka’s April-May commercial tax collection at ₹11,409 cr

Our Bureau Bengaluru | Updated on June 15, 2021

With the relaxation of lockdown restrictions in phases, the state’s tax collection will improve in the coming months.

Karnataka’s commercial tax collection for April and May period stood at ₹11,409 crore, an achievement of 14.92 per cent of the fixed target of ₹76,400 crore for FY 2021-22.

According to the Chief Minister's Office (CMO), the performance of other state’s own taxes – motor vehicles, stamps and registration did not see any significant collection during the first two months of this fiscal.

Collection from excise sales stood at ₹4,284.05 crore during April and May, as against the annual target of ₹24,580 crore. The growth in excise collection compared with the corresponding period of last year was 8.1 per cent.

The state's tax collection is set to improve in the coming months as lockdown restrictions are being relaxed in phases in the state.

Chief Minister B S Yediyurappa, who reviewed the state's tax collection on Monday, stated that tax collection in the State has been satisfactory despite the Covid-19 pandemic and instructed officials to initiate strict measures to collect taxes and prevent leakage.

In the financial year 2020-2021, despite the Covid-19 induced lockdown and later during the post lockdown period, the state collected ₹82,462 crore tax against the fixed target of ₹82,443 crore, which included ₹65,659 crore from GST sources, ₹15,861 crore from Karnataka sales tax, and ₹942 crore from professional tax.

FY22 target

For fiscal 2021-22, the state has fixed the following target: GST/commercial taxes ₹76,473 crore, Excise ₹24,580 crore, the Stamps and Registration ₹12,655 crore, Motor Vehicle sales ₹7,515 crore and others ₹2,979 crore.

The 44th GST Council on June 12 had approved Karnataka's GST compensation loan of ₹18,109 crore for fiscal 2021-22. A statement released by the chief minister office said that as the GST compensation period ends in 2022, the Chief Minister shortly would write to the Centre seeking to extend the compensation period. He is said to have instructed to submit a formal request before the next GST Council meeting.

Published on June 15, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor