Sharp fall in UT excise, ST collections

CHANDIGARH, March 3: The recession in the country's economy has also cast its shadow on the Union Territory's revenues for the current ye...

CHANDIGARH, March 3: The recession in the country8217;s economy has also cast its shadow on the Union Territory8217;s revenues for the current year, with collections from the state excise and sales tax way behind targets.According to official figures, the total revenue collection for the current year up to January this year is falling short by about 9.27 per cent of the proportionate revised target of Rs 181.25 crore. Officials are, however, hopeful of achieving the targets through a number of steps aimed at stepping up tax collections.

While UT had set a total revenue target of Rs 205.5 crore for 1998-99, it was revised midway to Rs 217.5 crore.

While the revenue shortfall is more pronounced in the sales tax collection, where the revenue collected up to January-end is less by about 15 per cent from the revised proportionate target, that for the state excise is a little less than the target. The excise collection of Rs 64.73 crore up to January this year is, however, less by about 8.69 crore falling short by 12 per cent from the corresponding period of 1997-98 when the total excise collected during the year was Rs 82.57 crore. The total sales tax collected so far is Rs 95.74 crore, against the total revised target of Rs 135 crore.

With the total sales tax collection of Rs 26 crore having received on account of the returns for the quarter ending December, officials hope to close the year almost touching the revised targets.

Similarly, for the passenger and goods tax collection, the revenue is falling short of the target by about 7 per cent this year. The only tax head where UT is ahead of the targets is on account of Entertainment and Show Tax, where it is about 22 per cent ahead of the set targets. UT has so far collected Rs 1.94 crore through passenger and sales tax and Rs 2.03 crore through entertainment and show tax till January-end. Explaining the shortfall, UT8217;s Deputy Excise and Sales Tax Commissioner, P.S. Gill, said, quot;In spite of the recession, which had led to less buying power of consumers, we have tried to come close to the target by mobilising the department and bringing efficiency. We are hopeful of achieving the target by the year-end, as raids are also being carried to check tax-evaders besides other steps.quot;

On the sales tax collection, the main reason cited is the general recession which has reduced the buying power of consumers, as big consumer durable items are not showing much sale.

On the excise front, liquor contractors feel that the sales, which generally used to pick up after the onset of winters, have not picked up this time. The liquor trade 8212; the major excise earner for the Union Territory 8212; is also reported to be running in loss. Another reason cited for the loss in the liquor trade is the lifting of prohibition last year by Haryana and liquor smuggling being made a non-bailable offence in Punjab.