chief
Prime VIP
Jalandhar, July 11
Inflation may have broken the back of the aam aadmi but the growing demand for goods and services, including petroleum products, appear to have benefitted the state exchequer.
Pizza Huts and other high-end eateries are said to be contributing a staggering Rs 60 crore as VAT to the state treasury while the collection from the 6 McDonald’s outlets is said to be in the region of Rs 2 crore, with the drive-in outlet at Jalandhar making the highest contribution.
Opening of shopping malls and retail outlets and their computer-generated bills have also proved a boon for the state treasury. Chances of tax evasion even on grocery items is vastly reduced at these outlets, explained an official.
While the SAD-BJP government did back the Bharat Bandh last week to protest against the hike of petroleum products, like other states Punjab too appears to be benefitting from the higher tax collection.
State’s revenue from VAT( Value Added Tax), charged on prices of various commodities, has doubled during the last four fiscal years. It was Rs 5,050 crore in 2006-07 but during this fiscal year the state actually hopes to exceed the target of collecting Rs 10,000 crore. Indeed, at the end of June the collection was pegged at Rs 2,700 crore, which is 26% more than the first quarter’s collection last year.
Collection from the sale of petroleum products alone is expected to increase by over Rs 300 crore in the state. Sources said that last year the VAT collected from the sale of petroleum products was Rs 1,500 crore but judging by the growing demand and the higher prices, the collection this year is expected to top Rs 1,800 crore.
There has been 29 per cent increase in the price of petrol and 26 per cent in the price of diesel during the past one year or so. In the entire country, Rs 1,82,000 crore was generated last year as tax revenue from the sale of petroleum products and Rs 96,000 crore out of it was pocketed by the states. Significantly, Punjab charges 33.5 per cent VAT, octroi etc. on petrol, possibly the highest in the country.
The consumption of petrol and diesel in the state continues to grow. Officials expect about 3 per cent growth in the consumption of petroleum products this year.
There is a flip side to the growth story though. Petrol is largely used in private transport and not so much for productive purposes while diesel is used more in agriculture, industry and in public transport. The state government’s projection is that the collection from the farm sector this year will not exceed last year’s figure of Rs 1,000 crore, largely because of the shortfall in the production of wheat.
Inflation may have broken the back of the aam aadmi but the growing demand for goods and services, including petroleum products, appear to have benefitted the state exchequer.
Pizza Huts and other high-end eateries are said to be contributing a staggering Rs 60 crore as VAT to the state treasury while the collection from the 6 McDonald’s outlets is said to be in the region of Rs 2 crore, with the drive-in outlet at Jalandhar making the highest contribution.
Opening of shopping malls and retail outlets and their computer-generated bills have also proved a boon for the state treasury. Chances of tax evasion even on grocery items is vastly reduced at these outlets, explained an official.
While the SAD-BJP government did back the Bharat Bandh last week to protest against the hike of petroleum products, like other states Punjab too appears to be benefitting from the higher tax collection.
State’s revenue from VAT( Value Added Tax), charged on prices of various commodities, has doubled during the last four fiscal years. It was Rs 5,050 crore in 2006-07 but during this fiscal year the state actually hopes to exceed the target of collecting Rs 10,000 crore. Indeed, at the end of June the collection was pegged at Rs 2,700 crore, which is 26% more than the first quarter’s collection last year.
Collection from the sale of petroleum products alone is expected to increase by over Rs 300 crore in the state. Sources said that last year the VAT collected from the sale of petroleum products was Rs 1,500 crore but judging by the growing demand and the higher prices, the collection this year is expected to top Rs 1,800 crore.
There has been 29 per cent increase in the price of petrol and 26 per cent in the price of diesel during the past one year or so. In the entire country, Rs 1,82,000 crore was generated last year as tax revenue from the sale of petroleum products and Rs 96,000 crore out of it was pocketed by the states. Significantly, Punjab charges 33.5 per cent VAT, octroi etc. on petrol, possibly the highest in the country.
The consumption of petrol and diesel in the state continues to grow. Officials expect about 3 per cent growth in the consumption of petroleum products this year.
There is a flip side to the growth story though. Petrol is largely used in private transport and not so much for productive purposes while diesel is used more in agriculture, industry and in public transport. The state government’s projection is that the collection from the farm sector this year will not exceed last year’s figure of Rs 1,000 crore, largely because of the shortfall in the production of wheat.
