THIRUVANANTHAPURAM: While economic slowdown has started hurting the state’s tax and non-tax revenues, the state government has decided to form a steering committee headed by chief secretary Tom Jose to minimise losses. The committee members will include Additional Chief Secretary Finance Manoj Joshi, secretaries of various revenue-earning departments like the Taxes, Excise, Motor Vehicles and Revenue. Sanjeev Kaushik, Finance Principal Secretary (Resources), will be the convenor.
Finance Minister Thomas Isaac told TNIE that the recession has affected the state’s economy and all types of taxes were showing negative growth. “Tax collections are low because of recession. The fuel tax, MVD tax, stamp duty... all show negative growth. The excise revenue too is low. The committee is to devise ways to improve the collections and plug leakage,” he said.
“The committee will review the collections weekly or once in a fortnight. The trends would be analysed and remedies would be taken. Another mandate is the recovery of outstanding tax arrears,” he added. Until September this fiscal, the total tax collection stood at Rs 20,659.12 crore as against Rs 20,344.14 crore in the corresponding period previous fiscal. The near-flat growth rate is attributed to the huge dip in the tax revenue from liquor and fuel sales. The collection from liquor and fuel sales between April and September this financial year was Rs 7,834.75 crore as against the previous fiscal’s Rs 8,395.64 crore.
TNIE had earlier reported that revenue from stamp duty was affected as property registrations in the state fell to a new low in September this year. The number of real estate deals in September was at 59,563 - the lowest this year. The number of registrations in September 2018 was 71,246.
TAX REVENUEApril-September, 2019-20:
Rs 20,659.12 crore
April-September, 2018-19: Rs 20,344.14 crore
PROPERTY DEALS
The state mobilised J83 crore as flood cess in August, the first month of the new cess. According to the Finance Minister, the collection was on expected lines, but quite insufficient to meet the rebuilding requirements considering the economic slowdown.
The number of real estate deals in September was 59,563, the lowest this year. The number of registrations in September 2018 was 71,246