The Delhi government has collected over Rs 8,400 crore in value added tax in the first six months of the current fiscal year, which is an increase of around Rs 420 crore as compared with the corresponding period the previous year.

According to the trade and tax department, a drive has been launched to increase the collection of taxes. The computerization and digitization of all records, ongoing process of shifting to e-governance and a crackdown on bogus dealers by the department is also expected to consolidate the tracking of revenue collections. This will help prevent corruption, say officials.

Sanjiv Khirwar, commissioner of trade and tax department, said the department has collected tax of Rs 8469.90 crore which is an increase of Rs 420.73 crore from the previous year.

"Under VAT system, the bogus dealers (dealers who take registration on wrong credentials and then disappear) issue fake tax invoices on the strength of which genuine dealers claim input tax credit and reduce their liability to pay VAT. Now, the VAT department has tightened the noose," Khirwar said.