Coimbatore sees decline in June ST collection

Coimbatore: The implementation of value added tax (VAT) in Tamil Nadu likely to be smooth. But the mid-term analysis of revenue collection that has brought forth a negative growth in sales tax collection to the extent of Rs 4 crore for June from Coimbatore sales tax division has startled the Commercial Tax authorities. The monthly VAT collection from the division including the industrial belt of Coimbatore, Nilgiris and Tirupur during June fell to Rs 134 crore as compared to Rs 138 crore for the same period of previous year.

The State Commercial Taxes Minister, Mr M. Ubayathullah, presiding over the first ever interactive meet with the trade and industry on VAT implementation held on July 25, gave out the tax collection break-up for January-June 2007 for the region (see table). Expressing worry over what he called the huge loss in revenue from the Coimbatore division, the Minister cautioned the trade/industry on short collection of levy saying that the state government took care to implement the VAT rates on consensus basis often by conceding to the trade''s demand for lowering the taxes in order to achieve greater compliance. The sales tax collection showing an average 20 per cent annual growth would maintain its tempo beyond August and the increase in revenue would reflect in the 2007-08 fiscal. Of the 4.22 lakh registered dealers for sales tax in the State, Coimbatore division accounted for about 73,000. Of the predictable tax collection of Rs 19,817 crore from the State last year, Coimbatore accounted for Rs 1,267 crore. The tax collected from Coimbatore trade during April-June this year worked out to Rs 417 crore compared to the entire State''s Rs 4,262 crore.