Hike in taxes adds to UTs coffers

PUDUCHERRY: The Puducherry government has been able to raise a tax revenue of Rs 1318.94 crore during the financial year 2011-2012,  which is Rs 244.40 crore more than the previous  financial year 2010-2011. This is significant as the government has been able to enhance its revenue at a time when it is steeped in financial difficulties.Commercial tax collections, the main grosser of revenue, has gone up to Rs 740 crore as compared to Rs 594.97 crore in 2010-2011. Excise revenue has increased to Rs 448 crore from  Rs 378.65 crore in the previous year. Transport revenue has gone up to Rs 53 crore from Rs 48.27 crores in the previous year, while revenue from  stamps and registration has increased to Rs 77 crore  from Rs 51.93 crore in the previous year. Other revenue also increased to Rs 94 lakh  from Rs 72 lakhs in 2010-2011.The enhancement of Value Added Tax (VAT)  and  excise duty as well as additional excise duty on January 1, 2012 has also had its impact on enhancement of the revenue, though marginally, in three months. The increase in revenue during the previous year, Rs 206.80 crore, was without any enhancement of taxes.However, in the current year the impact of enhanced tax on revenue could be more and better revenue realisation could be seen if the departments ensure the collection and prevention of tax defaulting. However, in contrast, the enhancement of the tax rates particularly VAT, ED and AED has brought down the volume of business. So far the negative effect on the business has not culminated into the revenue which has been seeing an upward trend. If this trend lasts.