UP commercial tax revenue to miss target of Rs 26,825 cr in FY11

Uttar Pradesh’s revenues from commercial tax in the financial year 2010-11 will miss the target of Rs 26,825 crore.

However, the final revenue figures would still be around 18-20 per cent higher compared to last year, when the department had collected Rs 20,668 crore. In 2008-09, the commercial tax revenue had stood at Rs 17,404 crore.

Till February 2011, the commercial tax department had realised Rs 21,185 crore against target of Rs 22,832 crore – a shortfall of Rs 1,647 crore. However, it was Rs 3,629 crore more vis-à-vis last year’s revenue totaling Rs 17,556 crore till February.

The tax revenue is expected to be around 90 per cent of the target. “Tax collection data is being collated from all over the states, but the target would most likely be missed by 8-10 per cent,” a commercial tax department official told Business Standard.

In a recent review meeting held by state commercial tax minister Nakul Dubey, Agra zone had emerged as the highest revenue earner, followed by Lucknow II, Varanasi I, Etawah, Meerut and Gorakhpur zones, who had earned cent per cent revenue of their target.

The minister had directed his officials to crack down upon fictitious firms/branches. He further directed if irregularities were detected in issuance of registration to such entities, the matter be referred to the headquarters with their recommendations.

Meanwhile, commercial tax e-payment had taken off well in Uttar Pradesh and the majority of tax collection is being done through this mode. This year, the government had targeted to collect almost about 75 per cent of tax electronically.

During 2009-10, commercial tax e-payment had accounted for 20 per cent of revenue, when this system was first introduced. The department had already tied up with several banks, such as State Bank of India, Allahabad Bank, Bank of Baroda, Punjab National Bank and Union Bank to facilitate e-payment.