The Hindu Business Line : H1 tax revenues of VAT-implementing States up 14.3 pc

TAX revenues of the 23 value-added tax (VAT) implementing States and Union Territories have recorded a 14.38 per cent increase during the first six months of the current fiscal, compared with the same period last year.

According to the data compiled by the Finance Ministry, the tax revenues of the 23 VAT-implementing States during April-September 2005 stood at Rs 33,400 crore as against the sales tax revenues of Rs 29,200 crore recorded during April-September 2004.

Official sources said that the tax revenues for the current fiscal include sales tax collections on petroleum products.

They, however, do not include Central sales tax collections.

The growth in tax revenues of these States/UTs for April-June was around 15.3 per cent at Rs 14,050 crore.

Meanwhile, the Centre has so far disbursed Rs 687.66 crore towards VAT compensation claims raised by five States.

While Maharashtra has received Rs 259.89 crore (April-June 2005), Kerala has received Rs 181.77 crore as VAT compensation for April-July 2005.

The other three States that have received VAT compensation claims are Andhra Pradesh (Rs 193.8 crore), Bihar (47.31 crore) and Tripura (Rs 4.89 crore).

Maharashtra, which accounted for nearly 20 per cent of the sales tax collections of the country, had submitted a compensation claim of Rs 259 crore for the first quarter (April-June).

This State had claimed that its revenues from VAT items had fallen short of the projected Rs 2,710 crore, as it had collected only Rs 2,451 crore during that period.

So far, 24 States and Union Territories have implemented State-level VAT in the country.

Uttaranchal had introduced VAT from October 1 through the ordinance route.

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