Punjab targets Rs 15,000 cr VAT collections up 20% by March 2013

The Punjab Government is expecting a rise of about 20 per cent in the collection of Value Added Tax (VAT) and Central Service Tax (CST) by the end of current fiscal ending March 2013.

The government has set a target of Rs 15,000 crore for 2012-13 as against Rs 12,223 crores collected during 2011-12. The revenue collection from VAT and CST had risen from Rs 11,227 crores to Rs 13,387 crores till the end of February 2013 as compared to same period last year. The enhanced collection amounts to Rs 2160 crores or about 20 per cent.

The excise collections are likely to be Rs 3400 crores showing an increase of Rs 674 crores which is up by 24.72 per cent. The new excise policy has been approved and the excise collections are targeted at Rs 4000 crores which would be an increase of about Rs 600 crores over the collections in 2012-13. The VAT collection from petroleum products was above Rs 2,500 crore this fiscal.

Punjab Governor, Shivraj Patil during his address to the State Legislature on the opening day of Budget session told the House that Punjab is on the process of modernization of VAT and excise administration has appointed Wipro as a system integrator for its computer related operations. All the processes will be paperless which will not only help in modernization of tax administration but will also be user friendly. The department has already started IT related services like e-filing, e-pass and e-billing. These steps would plug leakages and computerization is likely to ensure maximum compliance of our anti-tax evasion policies.

Annalists feel that the rise in annual Value Added Tax collection would be a welcome relief for the fund-starved Punjab Government which was finding it difficult to meet even the whopping salary bill of its employees.

With each passing year, the state government has seen considerable increase in their revenue collection through VAT. In 2009-10 the collection was Rs 8,284 crore which shot up to Rs 10,778 crore in 2010-11 and a further up to Rs 12,223 crore the next fiscal.

The Governor said that ?the state government has been performing well on fiscal front despite its growing committed expenditure. He said that during the current financial year 2012-13, state?s own tax revenue has growing by 12 per cent upto December, 2012. The state has also made consistent efforts to bring down the ratio of revenue deficit, fiscal deficit and outstanding debit to GSDP as per recommendations of 13th?Finance Commission.

Patil said that Punjab has been demanding major inputs to boost the farm and industrial economy of the state which has suffered major blows in the service of nation. Agricultural production had reached a point of stagnation and it needs a major push to kick start farm economy. He said that the state government has been demanding from thez centre a comprehensive economic package of Rs 5000 crores for diversification in Green Revolution. He said that it is not concession but a national investment.