Higher revenues from commercial tax excise duty

PUDUCHERRY: The government coffers have been filling up appreciably thanks to good collection of revenues from sales tax and excise duty - the two main revenue grossers for the Union Territory of Puducherry. While commercial tax revenue climbed up to Rs 833 crore, excise duty from liquor netted Rs 378 crore in 2010-2011.The commercial taxes department collected Rs 594.60 crore from Value Added Tax (VAT)  and Rs 234.44 crore from Central Sales tax (CST) to total Rs 833 crore.This is 196.22 crore higher than the previous years’s total - 636.78 crore (Rs 453.11 crore VAT and 183.67 CST ). The excise duty on arrack and IMFL has gone up by Rs 49 crore, as compared to the previous year.Even in the current year (2011-2012 ) till date, the commercial taxes department has netted Rs 151.44 crore comprising Rs 108.69 crore VAT and Rs 42.75 crore CST. The collections have been averaging Rs 55 crore per month.This augurs well for the UT as these revenues are the mainstay of Puducherry’s economy.It would also enable the UT to avail of more central funds during the meeting with the Planning Commission by the Chief Minister in order to finalise the plan size.The higher collection is attributed to on-line filing of tax returns, minimising tax evasion and collection of some pending arrears due to the government, a senior official of the department told the Express. Unless returns are filed and registrations renewed, the C-form application for trading would be rejected. The system would now allow it, he said.Though a large chunk of non-payment of dues by petroleum dealers is pending in the court with dues amounting to Rs 102.79 crore, the department has still managed to recover some of it. From three petrol bunks in Mahe, namely, Autofuel Agencies, Beach Trading Company and Surya Service Station, Rs 7 crore has been recovered. A total of Rs 1 crore has been recovered from Rajeswari Agencies in Puducherry. From Kanivannan Petrol Bunk in Karaikal, Rs 40 lakh has been recovered.From Vasanthi Agencies in Puducherry, unpaid dues totalling Rs 12 lakh  has been collected. Not only that, from the smuggled gold seized by the police, the department has collected Rs 3 lakh in the form of tax and penalty.The recovery of some long pending arrears has enhanced revenues as there had been no fresh tax levied by the government for eight long years, except in 2010-2011 when the tax on petroleum was enhanced.However, the government could add to its revenue and boost the treasury if the pending tax and penalty of Rs 102.79 crore due from petroleum and soda ash is obtained.