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Delhi: Despite festive boost, tax receipts shrink by 31%

In 2019, the city had collected Rs 23,751.93 crore under various heads such as state GST, sales tax, excise, taxes on vehicles, etc, between April and November. This fell to Rs 16,380.50 crore for the same duration in 2020.

Written by Mallica Joshi | New Delhi | January 4, 2021 4:56:47 am
State GST collections as compared to 2019 are down 28 per cent, while excise collections are down 27 per cent. (Representational)

After an over 80 per cent deficit in April, Delhi’s tax collection went up in subsequent months, but the national capital has seen a 31 per cent reduction in collection between April and November last year as compared to 2019. The collections, officials said, were 44.28% less than projected estimates for this financial year.

In 2019, the city had collected Rs 23,751.93 crore under various heads such as state GST, sales tax, excise, taxes on vehicles, etc, between April and November. This fell to Rs 16,380.50 crore for the same duration in 2020.

The only month in which Delhi got more taxes and fee as compared to 2019 was September, when Rs 2,417 crore was collected as compared to Rs 2,286 crore in 2019. Data show this was primarily because the city earned more in state GST and taxes on vehicles.

Data also show that there isn’t a single head under which the city earned more taxes in 2020 as compared to in 2019.

Senior Delhi government officials said the rate of recovery in the city is not very encouraging.

“We saw a considerable improvement in tax collections in July, when the difference between last year and 2019 was around 6 per cent. Thereafter the collection in September raised hope. In the festive season, however, which the city was banking on, we did not do as well as we had hoped and collections in October and November remained at a negative 15 and 19 per cent,” an official said.

State GST collections as compared to 2019 are down 28 per cent, while excise collections are down 27 per cent. Taxes on vehicles dipped 31 per cent.

The government has previously reached out to the Centre for aid to help disburse employee salaries and had cut expenditure on new projects as well.

Delhi has pushed to reopen in May, when the Chief Minister had said the country would have to find a way to live with the virus to ensure that more jobs aren’t lost.

According to Deputy Chief Minister Manish Sisodia, who also handles the finance department, a majority of jobs in Delhi are in the service sector, which has been hit the hardest because of the lockdown and subsequent restrictions on gatherings and strict norms regarding eating out and entertainment.

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