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Tax revenue down in first six months after prohibition
December, 07th 2016

BJP today said the claim made by Chief Minister Nitish Kumar that prohibition would have no effect on Bihar's financial health has been proved wrong as indicated by a drop of 16.23 per cent in tax revenue in the first six months of the current fiscal.

Rs 11,419 crore tax revenue was collected in the first six months in the last fiscal which has slid to Rs 9,565 crore this time, a drop by 16.23 per cent, senior BJP leader Sushil Kumar Modi said in a statement.

He said the period saw a decrease in commercial tax by 9.75 per cent vis-a-vis the same time last fiscal.

Against a target of Rs 2100 crore set by excise and prohibition department in the first two-quarters of the ongoing financial year, a meagre Rs 46 crore has come to state's kitty, he said.

The chief minister had claimed that state's revenue would have no impact after prohibition as about Rs 10,000 crore people would save after the ban on alcohol and the money would be spent on other items which would fetch revenue to the state "but CM's claims failed to show any result," he said.

Sushil Modi wondered why the state failed in tax collection when it had increased 5 per cent tax on clothes and sweets, surcharge on petrol/diesel and entry tax on a dozen items to compensate for the loss after prohibition.

The Nitish Kumar government, which proved unsuccessful in tax collection in the first two-quarters, will now make demonetisation an excuse for the drop in revenue mobilisation for rest of the period in the present fiscal, he said.

Sushil Modi, who is the leader of opposition in state legislative council, said results have been equally disappointing in collection of non-tax revenue as indicated by the slide by 10.77 per cent in mines and mineral, 11.63 per cent in agriculture and 19.77 per cent in environment department in first six months of current fiscal in comparison to the corresponding period last year.

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