VAT collection up by 32 per cent in H1
UP is not likely to take a decision on implementing VAT before state assembly elections early next year.india Updated: Nov 04, 2006 19:52 IST
VAT implementing states have recorded a 32 per cent growth in tax collection from VAT items to Rs 34,019.46 crore during the first half of this fiscal as compared to the corresponding period of previous fiscal.
In terms of tax collection on all items including non-VAT, the tax revenue growth of these states stood at Rs 54,616.57 crore during the first six months of the current fiscal, up 27.3 per cent over Rs 42,913.60 crore recorded in the same period last year, VAT panel chairman Asim Dasgupta said.
Dasgupta attributed the buoyancy in tax revenue collections to the inherent nature of VAT and growing consciousness of states to plug leakages in tax collection.
So far, all states and union territories except Tamil Nadu, Uttar Pradesh and Puducherry have implemented VAT.
While, Tamil Nadu has shown its intention to implement VAT from January next year, Puducherry is expected decide on the issue soon, he said, adding that UP may take few more months to switch over to the new tax regime.
UP is not likely to take a decision on implementing VAT before state assembly elections early next year.
Dasgupta said deviations from agreed VAT rates has further fallen to below three per cent of over 700 commodities.
"We want to further narrow down the deviations," Dasgupta said.
He said, the VAT panel has constituted a committee of states commercial taxes commissioners to arrive at commonalities in rules and procedures on VAT and is expected to submit report within a month.