Tax revenue goes down

Bhanu P Lohumi

Tribune News Service

Shimla, October 18 

About 40 per cent shortfall in tax collection under the GST in Himachal in 2017-18 has put a spoke in the progressive increase in revenue. The total collection was Rs 6133.56 crore, 0.6 per cent less as compared to the tax revenue of Rs 6,171 crore in 2016-17.

The target for 2017-18 was increased by about 15 per cent to Rs 7,000 crore, but it was not achieved and a target of Rs 7,306 crore (an increase of 19 per cent) has been fixed for the current financial year. 

The revenue from excise and sales tax/VAT was Rs 1,311 crore and Rs 2525.87 crore, but the revenue under the GST from August 2017 to March 2018 was only Rs 1,833 crore. “The collection from VAT was higher as liquor and petroleum products are not covered under the GST,” sources in the Excise and Taxation Department said.  

“The tax collection during the current year up to August 31 is satisfactory and hopefully the target will be achieved,” sources added. Under excise and sales tax/VAT, Rs 604.62 crore and Rs 522.45 crore have been accrued against the target of Rs 1425.76 crore and Rs 1,319 crore, while the collection under the GST has been pegged at Rs 1117.54 crore against the target of Rs 4064.46 crore. 

“Similarly, the tax collection under the Passenger and Goods Tax (PGT) and Other Taxes and Duties (OTD) is Rs 54.83 crore and Rs 136.70 crore and the target will be met as there is progressive increase in collections in the third and last quarter,” the sources said.

The tax revenue had been maintaining a rising trend since 2012-13 and it increased from Rs 3,971 crore to Rs 6,171 crore in 2017-18. The annual increase was 11.12 per cent (Rs 3,971 crore) in 2012-13, 13.92 per cent (Rs 4,524 crore) in 2013-14, 14.48 per cent (Rs 5179.76 crore in 2014-15, 8.45 per cent (5617 crore) in 2015-16, 9.90 per cent (Rs 6,171 crore) in 2016-17 and (minus) 0.6 per cent (Rs 6,133.56 crore) in 2017-18.

There are 1,01,098 registered dealers, including 79,350 normal and 21,346 composition. About 74 to 85 per cent are filing monthly returns online.

“The dealers were not accustomed to new regime, a section of the businessmen were not well aware of the accounting system and there were problems with the software initially, but now the issues have been resolved,” the sources stated.