The Delhi government has recorded a 10 per cent surge in sales tax collection at Rs 2,463 crore for the period ending November 2001, against a increase of 14 per cent targeted for the current fiscal.
"In the backdrop of a general sluggishness in the economy and shortfall in central tax revenues, the increase in sales tax collection witnessed in the state during the first nine months this fiscal is signficant," a senior Delhi sales tax department official said.
However, the collection is below the 14 per cent increase budgeted for the current fiscal, he added. Officials, however, said they were optimistic that the administration would be able to achieve this fiscal's budgeted sales tax target of Rs 3,800 crore.
The administration had witnessed a major hike in tax collection during the last fiscal.
Consequently the increase in the first six months of the current fiscal is vis-a-vis a higher sales tax collection base last financial year.
Delhi had recorded a 44 per cent increase in sales tax collection for fiscal 2000-01, primarily on account of an increase in tax rates in the state following application of floor rates across the country.
The state's sales tax collection stood at Rs 3,384 crore in 2000-01. Neighbouring states like Haryana, Punjab and Uttar Pradesh reported only marginal increase in sales tax revenues during the first nine months, making the increase in collection in Delhi even more significant, they said.
