Special Correspondent

CHENNAI: Introduction of Value Added Tax (VAT) had not affected the State’s revenue, claimed Commercial Taxes Minister S.N.M. Ubayadullah during the debate on demands for the Commercial Taxes Department in the Assembly on Tuesday.

Steady increase

Denying former AIADMK Minister C.V. Shanmugam’s charge that the percentage of revenue collections from taxes in the State had come down after the introduction of VAT, the Minister said there had been a steady increase in the revenue collection.

VAT was introduced in January 2007. In 2006-07 the collection up to January was Rs.19,217 crore. For the remaining three months, the State received a compensation of Rs.644 crore from the Centre taking the total collection to Rs 19,861 crore, an increase of 19.53 per cent.

Up 17.34%

In 2007-08 the total revenue was Rs.21,997 crore, including VAT compensation of Rs.1,396 crore and CST share of Rs.648 crore. The State was to receive another Rs.1,300 crore from the Centre as compensation. The increase in growth was 17.34 per cent.

He said the State registered increase in collections despite sales tax concessions given on various items in the last three years. On the other hand, during the previous AIADMK regime, ST was increased on 100 items.

Earlier, Mr. Shanmugam said revenue collections during the previous regime showed an increase of 14.55 per cent in 2002-03, 15.27 per cent in 2003-04, 18.29 per cent in 2004-05 and 19.47 per cent in 2005-06.

After the advent of the DMK rule in 2006, the growth rate was 15.66 per cent in 2006-07 and 3.83 per cent in 2007- 08.