With tax collections picking up during January and February 2016, the Excise and Taxation Department is all set to surpass last year’s tax revenue of Rs 5,179 crore. However, it would be a tough task for the department to meet the enhanced target of Rs 5,700 crore.
The tax collection which stood at Rs 3,695 crore at the end of November 2015 as compared to Rs 3,443 crore in the previous year increased to Rs 4,136 crore in December 2015 and stood at Rs 5,085.50 crore at the end of February 2016, posting an increase of Rs 949.50 crore in January and February.
“The figures for February 2016 are provisional and after adjustments an increase of Rs 30 to Rs 35 crore was expected, while maximum tax recovery is made during March, which is the last month of the financial year,” Joint Excise and Taxation Commissioner KK Sharma said.
“The target for the current year was increased in view of the expectations that general goods and services tax (GST) would be implemented but in spite of GST not in place, the tax collections are impressive as compared to neighbouring states. The department requires tax recovery of about Rs 500 crore during the last month and is hoping that the target would be achieved,” he added.
The collections under the value added tax stood at Rs 3,674 crore at the end of February, followed by excise duty (Rs 970 crore), other tax and duties (Rs 337.74 crore) and Passenger and Goods Tax (Rs 103 crore).
The collections under VAT and excise duty were Rs 3,660 crore and Rs 1,044 crore during 2014-15 and with special drive launched to make maximum tax recovery in March, substantial increase was expected in tax collections, Sharma said, adding that maximum advance tax was deposited by traders during March.
“After computerisation, the functioning of the department has gone online, resulting in transparency and efficiency and leakages have been plugged, which is one of the reason for better recovery,” he said, adding that the constitution of the Trades Welfare Board had facilitated all the stakeholders.
There has been progressive increase in tax revenue which increased from Rs 606 crore in 2000-2001 to Rs 1,222.70 crore in 2005-2006 and further increased to Rs 2,274 crore in 2009-2010, Rs 3,971 in 2012-2013 and Rs 5,971 crore in 2014-2015.
The tax recovery this fiscal was about 8 to 10 per cent more as compared to the last year and the income from major heads like excise and sales tax was also increased by 8.77 per cent and 7.32 per cent, respectively, till the end of December 2015.