Maharashtra may see rise in sales tax collection
Maharashtra’s finance minister Sudhir Mungantiwar on Wednesday said more sales tax is likely to be collected in the first few days of the new currency rule as all transactions will now be on recordmumbai Updated: Nov 10, 2016 00:01 IST
Maharashtra’s finance minister Sudhir Mungantiwar on Wednesday said more sales tax is likely to be collected in the first few days of the new currency rule as all transactions will now be on record.
The rise is expected to be between 5% and 10% of collection of the sales tax.
“While it is not possible to estimate the rise (in sales tax collections), it is expected to increase substantially. In many trades, traders have been following the practice of receipt-less transactions to save on taxes; even consumers do it to save money. In the last two days, most transactions have taken place in ‘white’, which will help us collect more taxes,” said Mungantiwar.
Mungantiwar also announced the government will intervene, whenever necessary, to ensure common people do not face hassles owing to the new regime. “We have held meetings with banks and the cooperative sector and asked them to go the extra mile to ensure the smooth roll out of the new scheme,” he said.
According to the officials from the Sales Tax department, the new regime will result in the rise of the sales tax by 5% at least. The estimated collection in the current year is Rs 81,437 crore, of which the government could collect Rs39,504 crore in the first six months. The officials said that they were hopeful of collecting more than Rs2,000 crore in the remaining year. The official said that transaction of the gold in last two days is expected to contribute most of the rise.
The finance minister said that in Mumbai alone, the police had seized the stock of fake currency worth Rs5.98 crore in 2014 and Rs1.44 crore in 2015. He said that of the total currency that amounts to Rs16.41 lakh crore in the country, Rs14.48 lakh crore were in the demonination of Rs 500 and Rs 1,000 crore. He said that the step will help the country in reducing the quantum of black money which was 23.3% in 2007.
First Published: Nov 10, 2016 00:01 IST