Orissa has witnessed a robust growth in tax collection during the first three quarters of the current financial year. Tax collection grew 27.08% to Rs 2868.78 crore during the period. While collection of the value added tax (Vat) rose 22.66%, central sales tax (CST) collection recorded a growth of 55.84%.

Top 500 dealers of the state have contributed more than 50% of the total collection. They paid Rs 1561.22 crore as Vat, the CST and the entertainment tax (ET) out of a total collection of Rs 2465.23 crore.

State finance minister Prafulla Chandra Ghadei said about 65% of the dealers were yet to file their returns. He directed tax officials to try to achieve the target of Rs 5101.70 crore, revised from Rs 4469 crore, set for the year. Tax collection during 2005-06 was Rs 3569 crore.

Ghadei said the state needed to achieve the tax collection target as it required an additional Rs 1500 crore this year to finance development and welfare programmes like the Biju KBK Yojna and the Gopabandhu Gramin Yojna.