The record wheat procurement in Punjab and Haryana, has not only breached previous levels but it has also helped soften the impact of recessionary pressure on revenue collection, as VAT collections from commodities in these states marked up to 43 per cent growth this season.
Punjab has recorded 40 per cent growth in the collection of Value Added Tax (VAT) from wheat, the highest ever at Rs 457 crore against Rs 327 crore mopped up the last season, as per information provided by Punjab Excise and Taxation department.
Similarly, VAT collections from wheat in Haryana touched Rs 315 crore from Rs 220 crore achieved in last season, up by 43 per cent.
Both, Punjab and Haryana impose four per cent VAT on wheat.
These states, also set fresh wheat arrival record in the mandis on the back of record production of crop. As per information, the total lifting of crop in Punjab touched the mark of 109.79 lakh MT against the 105.77 lakh MT achieved in last season.
Out of which, 90 lakh MT was bought by state agencies, 17.16 lakh MT by the Food Corporation of India (FCI), 22,047 MT by private traders and 2.39 lakh MT for state pool.
Likewise, Haryana also created history by recording total arrival of 69.15 lakh MT of crop out of which 69.11 lakh MT was lifted by procurement agencies. Significantly, the record wheat arrival in both the states, to a large extent, has absorbed the adverse impact of economic slowdown as far as revenue collections are concerned.
Recessionary pressures in the economy has hit Haryana's revenue as it witnessed a negative growth of nine per cent in collection of Value Added Tax (VAT) during April in the current fiscal.
"The VAT collection could have been dipped further had there not been record arrival of wheat," observed a senior official of Haryana Excise and Taxation department.
However, Punjab has posted just 12 per cent growth in total VAT collections at Rs 1,615 crore for April and May this year.
