04/12/2016

Dry Bihar’s tax revenue falls by 16%, may fall more after demonetization





Patna,(BiharTimes): Bihar’s tax revenue has fallen by 16.23 per cent in the first and second quarters (April-September) of the current financial year. After demonetization it is likely to fall even more.

While the fall in revenue generation in the first two quarters is being attributed to the prohibition, the scrapping of notes of high value has caused further slump in the market all over the country. This problem is going to persists for long and Bihar may not be able to recover its revenue generation in the second and third quarters as the state government was expecting.

A report tabled by finance minister Abdul Bari Siddiqui in the legislature in the recently concluded Winter Seesion revealed that tax revenue collection in the first two quarters of 2016-17 was slightly over Rs 9,565 crore, which is Rs 1,854 crore less than the Rs 11,419 crore collected during the same period in 2015-16.

The 2016-17 tax revenue collections also come to just 32.17 per cent of the budgetary target of Rs 29,730 crore for the entire year.

The excise revenue of the state has come down by 97 per cent and commercial tax revenue by 9.75 per cent when compared to the first two quarters of 2015-16.

Thus the  excise revenue collection from April to September 2016 has plummeted to Rs 46 crore from Rs 1,658 crore in the same period last year.

The report also said that commercial tax revenue has also plunged to Rs 6,746 crore from the Rs 7,475 crore collected during the same period last year.

The situation is so even when the commercial taxes department enhanced value added tax (VAT) on many items during the last financial year.

 

 

 

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