Hike in MP's revenue receipts

Bhopal, Nov 28 (UNI) Despite introduction of Value Added Tax in Madhya Pradesh in April this year, the state's tax revenue receipts totalled over Rs 4,314 crore during the first half of this fiscal, marking 17.74 per cent increase over the corresponding period last year.

The state's total tax revenue receipts for the current fiscal was estimated at about Rs 10,014 crore, official sources said today.

The state received tax revenue totalling Rs 7,592 crore during April-September this year, while the target for the year was Rs 17,044 crore. Total revenue receipts during the period was Rs 10,779 crore with 11.95 per cent non-tax revenue and 70.45 per cent tax revenue.

Collections under the state's own tax revenue heads in the first half of 2006-07 include commercial taxes (Rs 2,147 crore), excise duty (Rs 766 crore), stamp and registration fee (Rs 539 crore), professional tax (Rs 70 crore), goods and passengers entry tax (Rs 298 crore), motor vehicle tax (Rs 277 crore) and land revenue (Rs 75 crore).

About Rs 212 crore collected by the State Electricity Board under electricity tax and duty has been adjusted against tariff subsidy, while about 16 per cent fall in revenue from hotel tax is because of special exemption granted to encourage tourism industry.

With the introduction of VAT, tax rates on most items had come down while it increased on some items. Foodgrains have been placed under tax-free cateogry causing estimated revenue loss of about Rs 200 crore.

The Centre has fixed the eligibility of only 75 per cent for the state government in order to compensate the likely revenue loss following introduction of VAT, official sources said.

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