The estimate is based on the belief that there will be tax buoyancy on implementation of the new tax structure.
New Delhi: Contrary to the perception that the implementation of Goods and Services Tax would reduce the revenue collections of the Aam Aadmi Party (AAP) government, the tax collections have gone up by 15.87 per cent after the implementation of the new tax structure in the capital.
A source said that the government had been able to raise Rs 12,384 crore through Value Added Tax (VAT) till October 31 last year. But after the implementation of new tax structure on July 1, the revenue collections have gone up to Rs 13,815 crore so far this year.
Deputy chief minister Manish Sisodia in his budget speech for this financial year had expressed hope that the implementation of the GST will have a positive impact on tax revenue collection of the government.
“The projected tax revenue collection for 2017-18 amounting to Rs 38,700 crore, which is 19.33 per cent higher against the revised estimates of 2016-17 of `32,430 crore.
The estimate is based on the belief that there will be tax buoyancy on implementation of the new tax structure. Considering all these factors, no further tax proposal is being mooted during the financial year 2017-18.”
Last year, the Delhi government had reduced the VAT on several items, including air turbine fuel (ATF), construction material, including plywood, and sanitary napkins.
However, these reduced rates were applicable before the implementation of the new tax structure in Delhi on July 1 and were not continued.
According to the Economic Survey report, the Delhi government posted a growth of 20.84 per cent in tax collections in 2016-17 as against 13.61 per cent growth in 2015-16. The survey report also added that the number of dealers registered under VAT-/sales tax grew from 2.24 lakh in 2009-10 to 3.73 lakh (tentative) in this fiscal year.