VAT States record 23.41 pc rise in tax revenues in April-Jan
New Delhi: VAT-implementing States have recorded a 23.41 per cent increase in tax revenues in April-January 2007 to Rs1,09,095 crore compared with the collection level of Rs88,403 crore during the same period of the previous year.

This shows a slight decline to the recorded growth rates of 24-25 per cent so far during this fiscal. Official sources attributed the slight slowdown in the growth rates in collection to the inclusion of Tamil Nadu under the VAT-implementing States category from January 1. Tamil Nadu (with growth rates of about 18 per cent) is said to have pulled down the overall growth rate as its growth rate is lower than the national average.

The Finance Ministry expects further moderation in growth rates in February and March, when refund issues crop up.

The tax revenues of some of the major VAT implementing States during April-January 2007 are Andhra Pradesh Rs12,357 crore (Rs9,725 crore); Gujarat Rs9,330 crore (Rs7,030 crore), Delhi Rs5,458 crore (Rs4,682 crore), Rajasthan Rs4,930 crore (Rs4,067 crore), Haryana Rs4,419 crore (Rs3,653 crore), Karnataka Rs8,348 crore (Rs6,566 crore), Maharashtra Rs18,841 crore (Rs15,001 crore), Tamil Nadu Rs13,232 crore (Rs11,138 crore) and Kerala Rs6,714 crore (Rs5,406 crore).

As regards the non-VAT implementing States, the tax revenues of Uttar Pradesh for the period under review stood at Rs10,057 crore (Rs7,972 crore). Tax revenue of Puducherry during April-January 2007 stood at Rs303 crore (Rs250 crore).
Back to News Review index page  

Government to make tax filing Saral again
New Delhi: The government has decided to dilute the complex Form 2F for filing income-tax returns, which the IT department had painstakingly prepared only to face universal criticism. In its place, there will be a new, simplified and user-friendly tax return form.

"The new forms would be easy to file and user-friendly and are expected to be out in the next few days," a revenue department official said.

However, the department has yet to take a call on whether to call the new form-prepared with the help of the Indian Institute of Management, Ahmedabad-Saral or 2F or something else.

Whatever be the name, the objective of the form will be to elicit details on income of the taxpayer in a straightforward fashion.
The controversial cashflow statement for which Form 2F received much criticism too may be simplified significantly. However, the government may like to keep a version of the cashflow statement, but a simpler one that is more palatable to the general public.

Form 2F had drawn criticism from many quarters, including the Congress. The parliamentary standing committee on finance had hit hard at the five-page form saying it was cumbersome and lengthy and asked the government to stick to the Saral form.
Back to News Review index page  

DA hike cleared by Cabinet for central govt employees
New Delhi: The Union Cabinet on Thursday has approved a proposal to release additional instalments of dearness allowance (DA) and dearness relief (DR) in cash at the rate of 6 pc. The new rates would be effective retrospectively from January 1, 2007.

The Cabinet also approved enhancing the age of superannuation for teaching positions in centrally-funded educational institutions from 62 to 65 years with provision for re-employment up to 70 years against sanctioned vacancies.

The Cabinet Committee on Economic Affairs (CCEA), which met has cleared a proposal to extend Rs75 per tonne bonus on minimum support price (MSP) of Rs750 for procurement of wheat for supply through PDS.

The DA raise is the second in less than six months' time. The Centre revises DA for its employees bi-annually, in January and July, on the basis of movement in the consumer price index for industrial workers. The government last raised the DA and DR by 5 pc in September, 2006.
Back to News Review index page