Haryana collects record Rs.100 bn in taxes

April 13th, 2008 - 7:32 pm ICT by admin  

Chandigarh, April 13 (IANS) One of the rare states in India to have an annual surplus budget, Haryana collected a record Rs.100 billion in taxes during fiscal 2007-08. Haryana’s Finance Minister Birender Singh said here Sunday that the tax collection was a new record. “The gross increase in value added tax (VAT) and excise duty has a record of sorts,” he said.

Total VAT collection touched Rs.64.4 billion - a clear 20 percent increase over last year’s.

Haryana was the first state in the country to successfully introduce VAT in 2003. Other states introduced the new VAT regime only in 2005.

Birender Singh said that the excise collection was Rs.13.82 billion, an increase of 12.53 percent, which reflected a record gross increase for all times. In percentage terms, it was highest in the last 10 years.

Central Sales Tax (CST) collection in 2007-08 was Rs.13.57 billion. This collection was made despite the central government reducing CST rate from four percent to three percent, Singh pointed out.

Haryana recorded an increase of 35 percent in entertainment duty with a total collection of Rs.180 million in 2007-08 compared to Rs.130 million in 2006-07. Passenger and goods tax accounted for another Rs.3.30 billion.

The minister attributed the higher VAT collections to nearly 13,000 checks carried out by the state’s excise and taxation department which led to imposition of Rs.210 million in penalties on VAT evaders.

He said that 11,000 new traders had been added to the tax base in the state.

Singh said that tax arrears of Rs.1.25 billion were recovered in the financial year.

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