June sees 40 per cent rise in tax collection

Andhra Pradesh tax collections saw 40 per cent jump during June 2006 as compared with the same month last year, thanks to increased revenue flow from general commodities, and petroleum products among other things.

While the finance department officials are partly attributing the increase in tax receipts to higher growth rate in the manufacturing sector, which was 9.3 per cent last quarter compared with 8 per cent in the previous quarter, an improved tax compliance also added equally to the higher tax yields, according to them.

The state commercial taxes department collected Rs 1,277 crore last month as compared with Rs 963 crore in the corresponding month last year. The cumulative total during the current financial year up to June 2006 was Rs 3,361 crore as compared with Rs 2,412 crore during the corresponding period in 2005-06.

According to officials, the revenue collection from general commodities went up to Rs 600 crore in June this year from Rs 460 crore last year. Similarly, revenue from petroleum products too increased to Rs 470 crore from Rs 368 crore in June, 2005.

The department has set a target of Rs 15,000 crore revenue collection for the current financial year with an envisaged growth rate of 19 per cent.

"With the current trend, we certainly hope to achieve these targets," a senior government official told Business Standard.

After the introduction of VAT, the department has more or less followed the principle of voluntary compliance from the assessees, resulting in a large drain of revenues initially.

"Now the department is undertaking normal tax administration, which involves inspections and verification of returns filed by assessees," the official said.