April 1, 2021 7:40:09 pm
There has been a 11.4 per cent decline in the Gujarat government’s income from Value Added Tax (VAT) during the 2020 calendar year, compared to the previous year, the state government told the state legislature on Thursday.
In response to a question by Congress MLA Virji Thummar, the state government said a total of Rs 22,697 crore was earned during 2019 from VAT which is one of the top revenue spinners for the state. During 2020, this earning fell to Rs 20,110 crore which was about 11.4 percent less than the previous year. During this two year period, the lowest monthly earning was during the month of May 2020, when the government earned just Rs 802 crore. This earning during May 2020 – when the state was slowly opening up after a Covid lockdown – was 59 per cent less than the Rs 1,971 crore during May 2019.
The state government earns VAT through sale of diesel, petrol, natural gas, crude and liquour, the reply said. The Indian Express had recently reported that the Gujarat government would agree for fuel to be included under Goods and Services Tax only if the Centre ensured that its income from VAT remained unaffected.
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