A decline of nearly 20 per cent in Maharashtra's tax revenues in December 2006 has marginally pulled down the overall tax revenue growth rate of VAT-implementing States in the first nine months of the current fiscal.
Official data shows that tax revenues of the major VAT-implementing States grew by 24.42 per cent during the period to Rs 83,425 crore from Rs 67,050 crore in the corresponding previous period.
Revenues of the 30 VAT-implementing States (excluding Tamil Nadu, which moved to the regime from January 1, 2007) had so far recorded growth rates of 25-27 per cent.
Official sources attributed the drop in overall growth rates to fall in Maharashtra's revenues in December. (The State accounts for about 20 per cent of total tax revenues of States.)
However, the Finance Ministry expects revenues of the States to grow by at least 20 per cent this fiscal.
In December, Maharashtra's revenues fell to Rs 1,458 crore (Rs 1,805 crore). For the April-December period, revenues rose by 23.48 per cent to Rs 16,525 crore (Rs 13,383 crore).
Terming the decline in December as a blip, Maharashtra's VAT Department is understood to have assured the Finance Ministry that the situation would be corrected in the coming months.
Among the reasons cited by the State is the decision to allow certain dealers to avail themselves of opening stock credit that had not been utilised in the previous year.
Tax revenues of some of the major States in April-December 2006 were: Delhi Rs 4,804 crore (Rs 4,102 crore); Maharashtra Rs 16,525 crore (Rs 13,383 crore); Haryana Rs 3,957 crore (Rs 3,263 crore); Kerala Rs 5,957 crore (Rs 4,727 crore); Karnataka Rs 7,368 crore (Rs 5,856 crore); Punjab Rs 3,692 crore (Rs 3,334 crore); Andhra Pradesh Rs 10,970 crore (Rs 8,555 crore); West Bengal Rs 4,184 crore (Rs 3,561 crore); Gujarat Rs 8,446 crore (Rs 6,219 crore); Madhya Pradesh Rs 3,117 crore (Rs 2,548 crore) and Rajasthan Rs 4,407 crore (Rs 3,599 crore).