J&K Tax Base May Touch Rs 7000 Cr This Year

J&K Tax Base May Touch Rs 7000 Cr This Year

29 June 2013
The Daily Excelsior
Sanjeev Pargal

Jammu: Expanding its tax base, Jammu and Kashmir was, for the first time, set to cross the figure of Rs 6000 crores worth tax from its own resources during the current financial year, about Rs 700 crores more than the previous fiscal. These figures have been conveyed by the State Government to the Planning Commission of India (PCI) for claiming highest ever annual plan of Rs 8050 crores for this financial year. Official sources told the Excelsior that the State was expected to garner Rs 6600 crores from its own tax resources during 2013-14. During 2012-13, the State had recovered Rs 5900 crores from the taxes, which were Rs 500 crores more than the target of Rs 5400 crores fixed by the Government. The State’s tax base mainly comprised Valued Added Tax (VAT), Sales Tax (ST), Excise Tax, Motor Spirits Tax, Stamps Duty, Toll and Entertainment etc. Sources said the Planning Commission had sought details of the State’s own tax revenue during 2012-13 and proposed recoveries during 2013-14 before taking a final decision on funding the annual plan for current financial year. Though the Planning Commission was reportedly satisfied with the tax base of the State, it wanted it to be increased over the next few years so that the State was in a position to fund the healthy annual plan. The State has assured the Planning Commission that it would take all steps to increase its tax base but made it clear that it can’t burden the common man more as inflation was already breaking all records. “We want to increase our tax base but it has to be within the limits. It would be increased in a way that the common man was not affected,’’ sources said. They added that the State was likely to stick to its present tax base even during the next financial year as both Parliament and Lok Sabha elections were scheduled to be held next year. During last financial year of 2012-13, the State Government had fixed tax targets of Rs 5400 crores but it eventually ended up with collecting Rs 500 crores more totaling Rs 5900 crores. Though for current financial year, the State has fixed the target of Rs 6600 crores, Rs 700 crores more than the previous year, it was confident that even during current fiscal year it might touch the figure of Rs 7000 crores. Sources said the revenue generated on account of electricity supply in the State remained a cause of worry as despite increase in revenue over the previous years, it was falling well short of the targets. During 2012-13, the Government had set a target of Rs 1900 crores revenue realization for the Power Development Department (PDD) but it could collect Rs 1500 crores only. However, for 2013-14, the Government has set a target of Rs 2400 crores for the PDD. Though the Government was aware that the target was unlikely to be met, it hoped the PDD to touch Rs 2000 crores worth revenue to reduce the deficit between power purchase bill and revenue realized to some extent. Sources admitted that a lot remained to be done as far as the power losses were concerned and said it could take some measures to increase the revenue.