Value added tax collection in Punjab rose by 13.5% to Rs 12,200 crore in 2011-12, over the year-ago period.
"The total value added tax (VAT) collection for the year 2011-12 is Rs 12,200 crore, which is 13.5% up over last fiscal's collection," a senior official of Punjab Excise and Taxation department said.
The actual tax collection has surpassed the stiff target of Rs 11,800 crore set for the 2011-12 by the state government, he further said.
The rise in collection will bring a great relief for fund-starved SAD-BJP-led state government which has been facing paucity of funds for spending on the development projects, centrally sponsored schemes and meeting its committed expenditure like salary, pension and interest.
VAT collection is the only major source of income for the agrarian state as it constitutes almost 40% of state's total revenue receipts.
However, collection from excise on liquor has not grown as anticipated for the 2011-12 fiscal. The actual collection from excise revenue stood at Rs 2,900 crore, lower than the targeted collection of Rs 3,250 crore for the last fiscal.
As state government now wants to raise more resources to put state finances on the right track, Punjab Excise and Taxation department has set an ambitious target of Rs 15,000 crore from VAT collection and Rs 3,600 crore from excise for 2012-13.
In order to jack up the tax collection, the department has started a special survey to bring more traders under the tax net.
"The survey is aimed at bringing more traders, especially retailers under the tax net so as to raise revenue," the official said.
The department is expecting to register almost 20,000 more traders during its survey till June, while there are 1.20 lakh traders across the state registered with as tax assessees with it.
The Punjab government has also mooted a proposal to award a person who insists on getting a bill for any commodity purchased from a retailer. This move is aimed to plug the revenue leakage by way of suppressing actual sales by unscrupulous traders, he added.