Among the top ten states that account for 88.3 per cent or Rs 8.85 lakh crore of the total direct tax collection of Rs 10.02 lakh crore in 2017-18, five states grew faster than the national average growth of tax mop up over the last four years, comprising two BJP ruled states and three non-BJP ruled states.
While BJP-ruled Haryana registered the highest growth rate of 102 per cent (with relatively lower tax base), the next three states that registered growth rates 50 per cent or above are — Karnataka (67 per cent), Tamil Nadu (51 per cent) and Delhi (50 per cent) — are all ruled by non-BJP governments.
Among the top 10 states, the only one to have witnessed a contraction in growth is Uttar Pradesh as the state saw its direct tax collection decline from Rs 27,159 crore in 2014-15 to Rs 23,515 crore in 2017-18 — a fall of 13.4 per cent during the period.
When compared with the national average growth of 44.1 per cent during this period, UP’s performance on direct tax collection looks dismal. The second slowest growth among top 10 states was registered by Gujarat as the tax collection rose by 24.9 per cent during the four year period, nearly half of the national average growth rate.
The other non-BJP states in the list of top 10 states include West Bengal and Andhra Pradesh, recording 43 per cent and 41.9 per cent, respectively.
Maharashtra, accounting for nearly 40 per cent of the total tax collections, has seen its direct tax collections grow by 38.4 per cent during the period. States of Maharashtra and Delhi continue to account for more than 50 per cent share in total direct tax collections across the country. Tax mop up by Maharashtra increased to Rs 3.84 lakh crore in 2017-18, up from Rs 2.77 lakh crore in 2014-15. Tax collections by Delhi improved to Rs 1.37 lakh crore 2017-18, up from Rs 91,247 crore 2014-15.
The time series data on direct collections was released by the Central Board of Direct Taxes on Monday. Goa also recorded 11.3 per cent fall in its revenue collections during this period, possibly owing to certain restrictions ban on mining — which was a key source of revenue for the state.
Apart from Maharashtra and Delhi; Karnataka, with its capital Bengaluru being the hub of IT and industrial activity, is the only other state to record direct collections of more than Rs 1 lakh crore in 2017-18. Collections in the state nearly trebled to Rs 1.01 lakh crore in 2017-18, from Rs 60,595 crore. Newly formed state Telangana nearly doubled its tax collections in the past two years. It collected Rs 7,035 crore of direct tax revenue im 2017-18, up from Rs 3452 crore.
In the eight year period between 2010-11 and 2017-18, total tax collections of all states more than doubled to Rs 10.02 lakh crore from Rs 4.46 lakh crore. The proportion of direct taxes in total taxes fell to 52.29 per cent in 2017-18, from 56.48 in 2010-11.
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