News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
General »
 States object to plan to create defence fund out of divisible central taxes
 5% tax on foreign fund transfers that may go up to 10% for some
 After hike, tax collection of Delhi government falls in August
 I-T Deptt launches functionality for banks to check ITR filing status of entities
 How nudges can improve tax compliance
 What does entertainment tax mean?
 Catching elusive taxpayers still a work in progress
 Government clarifies on proposal to modify income tax returns
 Can buying shares in a rights issue leave you in a tax mess?
 Income tax scrutiny down in AY18; Delhi faced the highest, Bihar the least
 Delhi govt warns strict action against companies defaulting on tax payments
 Tax burden on salaried individuals, professionals to increase Delhi
 IT department randomly picks up cases to remove bias from tax scrutiny

After hike, tax collection of Delhi government falls in August
September, 09th 2020

The tax revenue collection of the Delhi government was lesser in August compared to July, after steadily increasing in May, June, and July. However, the sum is lesser than last year’s collection, according to the State government’s monthly tax collection figures.

After hitting the lowest in April, it had increased by 181.5% in May, compared to April. It hiked by 25.18% in June and 30.9% in July, but fell by 3.2% in August.

 

The revenue collection of the Delhi government for April to August is down by 53% (₹9,751 crore) compared to the estimated collection, as per the annual budget 2020-21.

The tax revenue collection is from five streams — VAT from petrol and diesel, GST, excise tax, stamps and registration tax, and motor vehicle tax (MVT).

In April, the amount was ₹525.50 crore, and it increased to ₹1,479.66 crore in May, ₹1,852.37 crore in June and ₹2,424.79 crore in July. But it fell to ₹2,341.65 crore in August. Compared to July, the GST, excise tax, and MVT have decreased.

Last week, Finance Minister Manish Sisodia had told The Hindu in an interview that the State government will continue with the schemes for free water, electricity and free bus ride for women, which costs hundreds of crores, despite the economy being in a “very bad” state.

The government is considering to rope in a third party to study how to boost tax revenue collection, especially GST, said officials. But a decision is yet to be taken.

Due to the fall in tax revenue, the government has reduced its expenditure to ₹11,376.44 crore during April-July, compared to ₹14,411.94 crore during the same period last year. It is a reduction of 21%.

Why less?

“Lesser tax collection could be because there was no demand in April and May and there was pent-up demand in June and July, which would have decreased in August. You did not buy in April, May and there would have been an uptick in July,” said Arun Kumar, economist and Malcolm S. Adiseshiah, Chair Professor at the Institute of Social Sciences.

When asked about the fall in GST collection in August, Mr. Kumar said: “It is difficult to comment on it without knowing which month’s collection it actually corresponds to.” He said that the government had given an extension for payment of GST of February and March till June due to the pandemic and this could have reflected in June and even July’s figures.

“With consumer confidence still low and unemployment high, I do not see a recovery in September. But it is difficult to make predictions and everything depends on the pandemic,” Mr. Kumar said. “During the festive season in October, there will be some increase, but it will be muted compared to last year or the year before,” he added.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting