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Steep increase in tax collections

Staff Reporter

Revenue during October witnessed Rs. 883-crore increase over that of last year

NEW DELHI: The pre-Diwali bomb blasts in the Capital may have dampened the festive spirit to some extent but that had little impact on business and trade as Delhi recorded one of the highest ever Value Added Tax (VAT) growth rates and collections during the month of October. Not only this, the overall tax collections including those from excise, entertainment and luxury tax are showing buoyancy.

The collections during October witnessed a massive Rs. 883-crore increase over that of last year. Against Rs. 2,834 crores collected till October 31 last year, the collections soared to Rs. 3,717 crores in October this year, an increase of Rs. 883 crores. Overall the Trade and Taxation Department collected Rs. 993.52 crores extra in revenue compared to last year due to simplification of the tax procedures and laws by the introduction of VAT.

Jubilant over the performance of the Department, Finance Minister A. K. Walia said the Government's stand of introducing VAT despite strong protests from various sections had been vindicated by the sharp increase in collections. He said there had been a cumulative increase of Rs. 883 crores in VAT collections, Rs. 61.26 crores in excise, Rs. 2.34 crore in entertainment tax and Rs. 46.92 crores in luxury tax during October 2005 compared to October 2004. The highest increase was in VAT that recorded a 25 per cent growth.

Dr. Walia said the cumulative receipt at the end of last month was Rs. 3,717 crores as against Rs. 2,834 crores collected during the same period last year. According to him, the growth rate so far is the highest ever recorded.

Giving credit for this achievement to the Department and the officials concerned, Dr. Walia singled out the Trade and Taxation Commissioner, Rajni Kant Verma, for special praise for ensuring such a massive growth. Not only had revenue collections touched a record mark but also new taxpayers had been enrolled on the rolls of the Department thereby widening the tax base.

Dr. Walia said the introduction of VAT had also reduced the harassment of traders, their visits to the Department had come down drastically and assessment matters were being disposed of in a time-bound manner. The Trade and Taxation Commissioner expressed confidence that the increased revenue would be utilised for developmental activities in Delhi and help in providing suitable infrastructure for the Commonwealth Games-2010 in Delhi.

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