Karnataka VAT revenue decline by five per cent

Karnataka's revenue earnings have declined by five per cent during the first half of the fiscal 2006 after the state switched over to the value-added tax (VAT) regime, prompting it to claim reimbursement of Rs 600 crore loss from the Centre, State finance, industries and infrastructure minister P G R Sindhia said on Thursday.

Addressing a press conference here, he said the Centre has asked the Comptroller and Auditor General (CAG) to evaluate Karnataka's claim for determining the loss.

Sindhia said the state hopes to get reimbursement from the centre as early as possible. His predecessor, Siddaramaiah, had said that the state's revenues grew by 27 per cent following the introduction of VAT.

"The figures speak for themselves. They cannot be altered. Officials have told me that revenues have plummetted by five per cent in the first six months. I will have to believe officials," Sindhia said.