MP shows 26 % rise in VAT collection

Madhya Pradesh has posted a 26 per cent rise in VAT collection with the implementation of the value-added tax (VAT).

The state, which is first in the country to adopt its own version of VAT, and was reluctant to adopt the VAT that some other states adopted last year, is now reaping the benefits.

"During April-October 2006, MP mopped up Rs 2,231 crore as against Rs 1,771 crore of the corresponding period of the previous year (sales tax earlier)," said a commercial tax department source.

"Against the target of Rs 8,473 crore for the whole year, the state collected Rs 4,469 crore till October," said an official source.