State expect 20% growth in tax so as to boost developmental plans in FY13.
It was a slowdown last year in Madhya Pradesh as well. Even so, when vaste swathes of the world were apprehensive about a looming economic crisis, the tax authorities of the central Indian state are expecting to muster the highest-ever revenue growth this year.
The state authorities are not only expecting to cross more than 20 per cent growth in tax collection—a record in the past several decades; they are also expecting to contribute a thick amount to the state kitty so that government can kick off its populist programmes in the forthcoming state budget.
If one goes by data land registration and stamp-duty collection, this has reached its highest—34 per cent—growth over the past year. The value-added tax collection has smartened up 24 per cent, professional tax 45 per cent, with excise and entertainment nearly 20 per cent to boot.
A senior state government official said stern actions, new taxations and proper assessment have checked incidences of tax evasion. “What’s more, they have also opened new tax resources to the state,” he told Business Standard.
This year, the state government had authorised deputy commissioner-rank officials to make assessment of trade and business that have more than Rs 50 crore turnover. Tax collections had, by the first week of January, gone up Rs 18,357.61 crore against the targeted Rs 21,000 crore.
An year-to-year basis analysis of data indicate that the state has collected Rs 15201.56 crore as on December 2011, vis-a-vis the year-ago figure of Rs 12406.98 crore. The December month has shown a buoyancy in entertainment tax collection, which grew by 51 per cent, VAT and other tax by 38 per cent and registration by 25 per cent. “There is no sign of let-up,” said the official. “We are comfortable and well within our target. Our tax collection growth will not go below 20 per cent to close the financial year.”
However, insiders believe the government had raised tax on some items—from 4 per cent to 5 per cent, and upper slab from 12.5 per cent to 13.5 per cent. It has widened its entertainment tax base.
More importantly, there is a surge in stamp-duty collection since the state government inflated prices of lands across the state.
