VAT cut on petrol and diesel to cost State around Rs 800 crore annually
STAFF REPORTER
GUWAHATI: Despite the Covid-19 pandemic, accompanied by lockdown, the commercial tax revenue collection in the state has gone up by 37 per cent. It is a good sign for the financial health of the state.
The commercial tax revenue collection in the state this year would have been even more had not the State Government cut VAT on petrol and diesel by Rs 7 per litre. The State Government will suffer Rs 800-crore loss annually due to the VAT cut on fuels. The VAT collection on petrol and diesel last year was around Rs 2,000 crore.
The commercial tax revenue collection in the state from April to October this year is Rs 8,716 crore against Rs 6,333 crore collected during the corresponding period last year, sources said.
The commercial tax revenue in Assam has two major components – excise revenue and motor vehicle revenue. Last year, the State Government collected Rs 1,399-crore excise revenue, Rs 765-crore Motor Vehicle revenue and Rs 7.80-crore agricultural revenue.
The State Government's revenue receipt is merely 25 per cent, and the rest comes from other sources like central tax, non-tax revenue, grant-in-aid etc.
Last year, the State Government got 29.30 per cent central tax and 37.68 per cent grant-in-aid. It shows that the state largely depends on the Centre.
Apart from these, the State Government takes loans from various other sources. The permanent debt of the state was Rs 22,471 crore in 2018 that swelled to Rs 41,551 crore in 2020. The per capita loan outstanding in the state was Rs 12,043 in 2016, and it rose to Rs 20,171 in 2021, the sources added.
The sources further said that tax revenue collection in the past few years was only 25-29 per cent in the state. It is because the state has no industries and other revenue-earning sources.
However, despite the Covid-induced lockdown, Chief Minister Himanta Biswa Sarma kept his eyes peeled on revenue collection almost every day. He asked the authorities concerned to plug all holes in revenue collection. It led to the rise in motor vehicle tax and excise tax collection this year, surpassing the amount collected last year, the sources added.
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