Sushil attacks JD(U) over sharp fall in revenue generation

Apparently leaving no opportunity to find fault with the JD(U), former Bihar Deputy Chief Minister Sushil Kumar Modi today attacked the state government over the sharp fall in revenue collection after the ruling party broke away with the BJP in 2013.
Not only development, but revenue collection too has been a casualty due to the ruling JD(U)'s decision to snap ties with the BJP in 2013 as there has been drastic decline in growth of revenue from sales tax, registration, excise and transport, etc, he said in a statement.
Giving specific details, Modi, who held finance portfolio in the Nitish Kumar government for eight years, said that as against 28.87 per cent growth in revenue collection in 2012-13, the same grew by only 22.81 per cent in 2013-14 but an abysmal 3.33 per cent in 2014-15.

Similarly, the sales tax collection also fell steadily at 21.44 per cent in 2013-14 and 4.11 per cent in 2014-15 from a high of 29 per cent growth in 2012-14, the former deputy chief minister said.
In aggregate terms, the sales tax collection declined by Rs 3535 crore in 2014-15 despite the fact that tax rate on diesel and petrol among other goods was increased by the state government.
The JD(U) government hiked the rate of VAT on diesel by two per cent at 18 per cent and raised surcharge by ten per cent, but the twin measures failed to prop up sales tax collection, Modi said.

He also took the state government to task for the not- so-satisfactory growth in excise tax collection despite growth in consumption of liqour, reduction in dry days, spike in liqour price and said that despite these measures the excise department collected Rs 92 crore less revenue than the target in 2014-15.
The transport department too has been a laggard as the tax collection from sale of vehicles and related heads declined by 14 per cent in 2014-15, Modi said and alleged that the failure to meet revenue collection target spoke volumes of the state government's "ineptitude".