UP revenue collection lapses cost exchequer Rs 450 crore

Lucknow, Mar 11 (UNI) The latest CAG report has shown serious irregularities in revenue collection by various Uttar Pradesh departments, which saddled the state exchequer with losses amounting to Rs 450 crore.

According to CAG report tabled in state assembly today, during 2004-05 revenue raised by UP -- both tax and non-tax -- amounted to Rs 18,412.90 crore.

The state government raised only 49 per cent of its receipts while the remaining 51 per cent came from centre. The percentage of revenue raised by UP was lower by one percent compared to 50 per cent in 2003-04. During 2005-05, UP could not collect tax and non-tax revenue estimated in its budget for the year.

During 2004-05, tax revenue and non-tax revenue registered an increase of 15.38 per cent and 19.20 per cent over the receipts of previous year respectively.

A test check of records of trade tax, excise, taxes on vehicles, goods and passengers, stamp duty and registration fee, land revenue and other departmental receipts, conducted during 2004-05, revealed under-assessment, short-levy, loss of revenue etc amounting to Rs 642.86 crore in 2,114 cases.

The concerned departments accepted under-assessments etc of Rs 27.73 crore in 133 cases, of which 119 cases involving Rs 1.63 crore had been recovered upto March 2005.

Over 8,560 inspection reports, issued up to 31 December 2005 containing 17,394 audit observations -- with money value of Rs 4102.33 crore -- were not settled upto June 2005.

According to the report, review on assessment and collection of trade tax revealed that non/short levy of tax amounting to Rs 5.11 crore in case of 32 dealers, non-levy of entry tax amounting to Rs 2.51 crore in case of 14 dealers and penalty amounting to Rs 4.92 crore in case of 33 dealers in 32 trade tax offices was not levied.

Other lapses detected were loss of revenue due to incorrect grant of eligibility/recognition certificate to new industrial units resulting in incorrect allowance of exemption/reduction from tax of Rs 57.86 crore and irregular exemption amounting to Rs 1.67 crore to four dealers.

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