Karnatka VAT collection up 63% in April

Karnataka has registered an impressive growth in collection of the value added tax (VAT) this April as compared to the corresponding period last year.

The government has managed to collect Rs 612.12 crore as VAT in April 2006 as compared to Rs 374.55 crore in April 2005, thus registering a growth of 63.34 per cent.

Similarly, the collection of commercial taxes has increased 27.23 per cent over the previous year. In April 2006, the collection of commercial taxes stood at Rs 1,257 crore as compared to Rs 988.63 crore in April 2005.

Announcing this at a press meet here, deputy chief minister B S Yediyurappa, who holds the finance portfolio, pointed out that the revenue collection has exceeded the target in the first quarter of the calendar year. "As against a target of Rs 18,555 crore, we have been successful in collecting Rs 19,685 crore," he added.

The growth figures include the compensation availed from the Centre on account of VAT losses. "The VAT losses compensated by the Centre in February and March 2006 are Rs 135.57 crore and Rs 233.96 crore respectively," he added.

The performance in collection of VAT is increasing every month. "In February 2006, it was Rs 629.16 crore and in March it was Rs 787.16 crore. When compared to the corresponding period last year, the growth rate for the two months is 26.16 per cent and 22.74 per cent respectively," Yediyurappa stated.

However, the collection of motor vehicle taxes witnessed a dip in March this year. The collections stood at Rs 80.72 crore as against Rs 93.70 crore last year.

"The 13.85 per cent negative growth is on account of adjustment of entries made by the state transport undertakings in 2005-06 itself. However, the revenue collected in the last three years from motor vehicle taxes is on the rise," he contended.

In 2003-04, it was Rs 828.88 crore, in 2004-05, it was Rs 1,062.92 crore and in 2005-06, it rose to Rs 1,166.86 crore.

Similarly, there has been a rise in the collection of stamps and registration taxes over the last three years. In 2003-04, it was Rs 1,416 crore, in 2004-05, it was Rs 1,809.92 crore and in 2005-06, it increased to Rs 2,373.33 crore, Yediyurappa said.