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Higher wheat arrivals fatten Punjab exchequer

Chandigarh: Higher wheat arrivals in Punjab has not only helped the Union Government in achieving record procurement, but it has also fattened the State exchequer significantly, with Punjab witnessing a jump of 91 per cent increase in VAT (Value Added Tax) collections and 84 per cent jump in market fees from wheat lifting during this procurement season.

The VAT collections from wheat has jumped by Rs. 200 crore to Rs. 420 crore this year on account of increased arrivals of crop in the grain markets this year. “Our VAT collections from wheat has increased to Rs. 420 crore against just Rs. 220 crore collected during last procurement season,” Punjab Excise and Taxation Commissioner, A. Venu Prasad said. Punjab charges 4 per cent as VAT on wheat procurement.

Similarly, State-owned Punjab Mandi Board has witnessed 84 per cent hike in market fee collections till May 19. The total collections have zoomed to Rs. 202.16 crore from Rs. 109.65 crore in corresponding period of last year, showing an increase of Rs. 92.51 crore, an official said. Punjab Mandi Board charges 2 per cent as market fee on wheat procurement.

The record collections from wheat this year also assumes significance as the low arrivals of wheat crop in the state over the past few years has caused heavy losses to the Punjab government.

The State alone suffered a net loss of Rs. 227 crore with the fall in wheat arrivals to the tune of 26.31 lakh tons from 2001-02 till 2007-08. -- PTI

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