The slowdown in the real estate sector is also reflecting in slower revenue growth at the state governments. The Maharashtra government's revenue collection missed its target by Rs 2,000 crore in the fiscal year ended March 31, 2009 of which Rs 1,600 crore alone is attributable to the drop in stamp duty collection and registration charges, owing to a dip in transaction in properties.
Revenue generated from tax collections, however, increased by Rs. 3286 crore in the financial year 2008-09 though it was still short of the original target by around Rs. 2,000 crore.
The target for stamp duty collection in FY09 was Rs. 9,600 but state government managed to collect only around Rs. 8,000 crore, according to Maharashtra finance minister Dilip Walse Patil. Interestingly in the last fiscal year Maharashtra government had managed to exceed the target for stamp duty and registration charges by about Rs. 600 crore, the target was Rs. 7,200 crore in FY08.
Replying to questions finance secretary Vidyadhar Kanade said, the target for revenue collection was about Rs. 85,000 crore but we missed the target by around Rs. 2,000 crore.
Despite recessionary trend in the economy, we managed to collect higher revenue than FY08, in FY08, state’s total collection through taxes was Rs. 79,958 crore and in FYO9 we collected Rs. 82,869 crore said, Walse-Patil.
Except stamp duty and registration, all other major sources of tax collection have shown increase which include VAT, Motor Vehicle Tax, State Excise and Professional Tax, he pointed out.