There has been no decline in VAT collection in most northern states in 2008-09 despite the slowdown, said a comparative analysis on VAT collection over the past two years by the PHD Chamber.
Releasing the report, PHDCCI claimed here today that Haryana is the frontrunner in VAT collection in 2008-09, with an increase of 45% in VAT collection. Haryana collected a total of Rs 9,785 crore in 2008-09, which is 45.87% above the VAT collection in the previous year.
According to the PHD Chamber analysis, other northern states, including Uttar Pradesh, Punjab, Rajasthan and J&K, significantly increased their VAT collection in 2008-09.
In UP, the percentage increase in VAT collection in 2008-09 over the previous year was 15.86%. For Punjab it was 22.19%, while in Rajasthan it was 17.41% and 14.17% in J&K.
Delhi registered a decline of 6.66% in VAT collection in fiscal 2008-09 compared to the previous year’s Rs 7,500 crore. Himachal Pradesh also registered a slight decline of 1.66% revenue in 2008-09 compared to the previous year’s revenue of 978.98 crore
The Chhattisgarh government has collected VAT of Rs 3,470 crore for 2008-09, which is 36.83% above the VAT collection in 2008-09. The next highest surplus generated after Chhattisgarh is Rajasthan, at Rs 1,349.26 crore — 17.41% higher than the previous year’s VAT collection.
The PHD Chamber study said that by plugging loopholes of tax evasion among traders, states would be able to augment revenue this year. The poor condition of mobilisation of resources is a matter of concern as the state governments could collect higher revenues by appropriate procedural measures to ensure foolproof compliance, said Satish Bagrodia, president, PHD Chamber.