The Hindu : New Delhi News : Sales tax collection registers high growth

Online edition of India's National Newspaper
Sunday, Jul 18, 2004

New Delhi

New Delhi

Sales tax collection registers high growth

By Our Staff Reporter

NEW DELHI, JULY 17. Continuing with the buoyant growth in the revenue receipts, the Sales Tax Department of the Delhi Government has registered a whopping growth of 25.70 per cent in tax collections during the first quarter of the current financial year. The Department has set a Rs. 4,800 crore collection target for 2004-05.

"Our revenue collections especially the sales tax during the first three months has been very good. We are confident that we will not only achieve the target but also exceed it. This is the first time that Delhi had registered such a massive growth in tax collections and we hope to maintain it,'' remarked the Delhi Chief Minister, Sheila Dikshit.

This jump is contrary to the negative growth recorded during this period last year when tax collections had slipped badly and were hovering around 6 to 7 per cent. However, ever since R.K. Verma took over charge of the Bikrikar Bhavan, things have changed dramatically. Not only Mr. Verma ensured that the Delhi Government met its target of Rs. 4,300 crore for 2003-04 but also exceeded it. In fact, the Government had given up hope of achieving the target during the regime of former Sales Tax Commissioner, Rahul Khullar, and alarm bells had started ringing in the corridors of power. It was with this intention that Mr. Verma was brought in and he ensured that things move really fast.

During the first three months of current financial year, the Sales Tax Department had collected Rs. 1,208 crore as against Rs. 961 crore during the same period last year registering a 25.70 per cent growth. The collections are Rs. 247 crore more than the last year's receipts for the first quarter. In the month of April 2004, the Department collected Rs. 353 crores against Rs. 307 crore last year. In May the figure touched Rs. 489 crore against Rs. 423 crore last and in June it registered a record Rs. 366 crore collection against Rs. 231 crore for the same period last year.

Confirming the collection figures, Mr. Verma said that it was partially due to economic buoyancy and efforts of the Department that such a growth rate had been achieved. He said that compliance factor had increased and the interactions with the various business associations and chambers had resulted in increased collections. He also complimented the efforts of the officers of the Department who had toiled have toiled hard to ensure smooth growth in the revenue receipts.

Asked about the Value Added Tax (VAT) regime to be implemented from April 1, 2005, Mr. Verma said the Chief Minister had already declared that Delhi would go ahead with the implementation if all other States do so. He said the Government was in the process of formulating VAT legislation and seeking the views of the all concerned including traders. The Department would also ensure proper training for its staff to implement the new system from next year and hoped that all concerned would understand the need for having in place such a progressive taxation system in place.

For her part, Ms. Dikshit said the United Progressive Alliance (UPA) Government at the Centre had clearly stated its stand on VAT. Certain issues need to be sorted out and hopefully everything will fall in place by the April 1 deadline.

However, she assured that interests of Delhi and its traders would be kept upper most in mind while taking any decision on the issue.

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