There has been no decline in VAT collection in most of the Northern States in the last fiscal 2008-09 despite the slowdown in the economy. This comparative analysis on VAT collection comparison over the last two years has been done by PHD Chamber.
Haryana is the front runner in VAT collection in 2008-09 with an increase of 45% in VAT collections. Haryana collected a total of Rs 9,785 crore in the year 2008-09 which is 45.87 % above the VAT collections in the previous year, 2007-08. Delhi registered a decline of 6.66% in VAT collections in fiscal 2008-09 compared to the previous year VAT collection revenue of Rs.7500 crores. It is relevant to note that the Delhi Government had budgeted Rs.1000 crores in VAT collection in the budget proposed. Himachal Pradesh also registered a slight decline of 1.66% revenue in 2008-09 compared to the previous year revenue of 978.98 crores (Figures for April 08-09).
(Rs. in crore)
STATES |
2007-’08 revised |
2008-’09 revised |
Shortfall |
Surplus |
% increase or decrease |
Delhi |
7500 |
7000 |
500 |
|
(-)6.66 |
Uttar Pradesh |
15021.83 |
17403.67 |
|
2381.84 |
15.86 |
Chhattisgarh |
2536 |
3470 |
|
934 |
36.83 |
Haryana |
6708 |
9785 |
|
3077 |
45.87 |
Himachal Pradesh |
978.98* |
962.73* |
16.25 |
|
(-)1.659 |
Rajasthan |
7750.74 |
9100 |
|
1349.26 |
17.41 |
Punjab |
5543.49 |
6773.76 |
|
1230.27 |
22.19 |
Jammu& Kashmir |
1287.71 |
1470.22 |
|
182.51 |
14.17 |
|
|
|
|
|
|
Table 1: Comparative analysis of VAT collections of Northern and Central states
*Himachal Pradesh figures April ’08- January ’09.
According to the PHD Chamber’s analysis the other states in Northern Region including UP, Punjab, Rajasthan, J & K significantly increased their VAT collections in 2008-09.
In UP the percentage increase in VAT collections in 2008-09 over the previous year (2007-08) were 15.86%, for Punjab it was 22.19%, in Rajasthan it was 17.41% and in J & K 14.17%.
The Chhattisgarh government has collected VAT of Rs.34,70 crore for the year 2008-09 which is 36.83% above the VAT collections in 2008-09. The next highest surplus generated after Chhattisgarh is Rajasthan by Rs.1349.26 crore, which is 17.41% higher than the previous year VAT collections.
According to PHD Chamber study, by plugging loopholes of tax evasion among traders, states would be able to augment revenue during this year. “The poor condition of mobilization of resources is a matter of concern as the state governments could collect higher revenues by appropriate procedural measures to ensure foolproof compliance”, said Mr. Satish Bagrodia, President, PHD Chamber
Anjula Singh Solanky
Dy. Secretary-Media Relations
PHD Chamber of Commerce and Industry
