As political squabbling goes on in the national Capital over the formation of Government, the Revenue Department of Delhi Government has registered a decline in meeting its revenue targets during last two quarters.
This has happened after so many years when the Revenue Department failed to realise its targets set in the fiscal. Top officials said that it happened because two major contributors to the exchequer Excise and Sales Tax Departments had realised advance taxes from assesses last year to meet their targets. The reality came back hard to bite them this time round as revenue recorded a shortfall. The delay in implementation of new circle rates of properties is also major reason for decline of property tax collection. Worried over decline in recollection growth rate, Chief Secretary DM Spolia has decided to fix responsibility of the concerned HoDs. The Chief Secretary had called a high-level meeting to discuss shortfall of revenue collections on Tuesday. As per July figure, total revenue collection was registered at Rs 8,020 crore in the current fiscal year as compared to Rs 8,137 crore last year during the same period. There is a shortfall of Rs 117 crore and that has queered the pitch for the Revenue Department.
Top officials told The Pioneer that major shortfall in revenue was registered in stamp and registration duties as only Rs 972 crore has been collected till July this year. The revenue generated through excise duty is Rs 990 crore while Value Added Tax (VAT) collection is registered only Rs 5,429 crore till July. As per data, Rs 488 crore is collected this year from registration of new vehicles and the growth rate is positive. The registration of new vehicle has been increased as compared to the last year. The Transport Department is expected that with the auctioning of VIP numbers, the financial health may improve further. It is noted that Rs 915 crore has been collected from excise, Rs 5,420 crore from VAT and 480 crore from transport sector during the same period last year. At a high level meeting of all revenue collection departments, Chief Secretary has expressed concern as the expenditure so far has exceeded the revenue collection. The Chief Secretary also directed to take immediate action to boost revenue collection.
Worried over poor financial health of Delhi, the Chief Secretary had earlier cautioned these departments and especially their HoDs that performance of the officers would be watched and non- performance may be recorded in their annual confidential reports besides taking other appropriate action as deemed necessary in such cases. The decline of property registration is a major concern of area for revenue officials. Both excise and VAT has collected taxes in advance to meet their target last year. This is also a major reason for decline of revenue collection this year. The excise is the only department which has healthy revenue collection and its growth rate is over 25 per cent.
Officials said that there were several proposals to boost revenue collection but those measures have been put on hold by lieutenant Governor Najeeb Jung in the absence of elected Government. The proposal to hike DTC fares, bring more food items under VAT purview was put on hold. Similarly, the proposed circle rate of property also put on hold after objection from finance department on recategorisation of several colonies. “One side, the Government says that there is a need to boost revenue collection while on the other, they dumped their proposal to enhance revenue collection,” he said.