Despite the fact that Punjab?s industrial sector which is reeling under the pressure of economic slowdown and the plans of the state government to rev-up tax collections are facing delay in execution, the state?s excise and taxation department is quite confident to achieve its target of Rs 7,100 crore from VAT and CST collections in the financial year 2008-09.

The revenue collection from VAT stood at Rs 745.43 crore in November against Rs 558. 29 crore in the corresponding period last year. The total VAT collection till November this year is Rs 4,810.4 crore against Rs 3605.83 crore in the corresponding period of last year posting 33.4% growth.Total collection of Rs 5,136 crore was recorded in 2006-07, which climbed to Rs 5,871 crore in 2007-08.

When VAT collections showed buoyancy, CST collections fell due to cut on CST imposed by the central government.

The department registered CST collection of Rs 18.1 crore in November only as against Rs 24.9 crore in the corresponding month of last year. The total CST collection till November stood at Rs 182 crore as against Rs 234.9 crore in corresponding period of last year registering negative growth of 22.3%.

But Punjab excise and taxation commissioner, A Venu Prasad was hopeful that considering the VAT collections till date, the target of Rs 7,100 crore will be achieved despite all the hurdles.

However the state government?s plan to launch recruitment drive to fill the shortage of 165 tax inspectors has run into a controversy. Commenting on the issue, Prasad said, ?A recruitment drive to select tax inspectors was launched in 1999 but the government at that time failed to declare results. Now few persons have moved to the court requesting the declaration of results. We cannot recruit new people as matter is pending with the Court?.

Another project to reduce the congestion at Information Collections Centres (ICCs) by improvement of all the 36 check-posts in the state will get delayed. Punjab Infrastructure Development Board (PIDB), which was the nodal agency to carry out the project of integrated check-post at the cost of Rs 4 crore is facing liquidity crunch, which will cause the delay.