Team Herald
PANJIM: Since the implementation of Goods and Services Tax (GST) in the State, Goa’s tax collection has marginally increased by 1.78 per cent as recorded by the Department of Commercial Taxes.
The department, through tax collections, earned Rs 3,256 crore in the financial year 2017-18, as against the Rs 3,199 crore in the previous financial year. The department was collecting tax under five heads, Value Added Tax, Central Sales Tax, Entry Tax, Entertainment Tax and Luxury Tax.
Speaking to Herald, Commercial Taxes Commissioner Dipak Bandekar said, “There is a marginal increase of 1.78 per cent in tax collections as compared to the previous year. Goa tax collection could have easily increased by 10 per cent but certain factors led to the downfall, one being exemption of entry tax on industries wherein the State earned Rs 450 crore annually.”
He added, “Revenue was also lost as under GST restaurant tax virtually came down from 12.5 per cent to 5 per cent out of which only 2.5 per cent is earned by the State and the rest is taken by the Centre.”
Highlighting other factors, the commissioner further said that under the entertainment tax a ticket of Rs 1,000 was compulsory but now under GST regime, the ticket is not compulsory but whatever the entry fee, the operator has to pay 28 per cent tax however, there are legal loopholes to this.
“Since they have to pay 28 per cent they now have a legal loophole, that is do not charge anything but they say the customer has to buy food coupons where they
just have to pay 5 per cent taxes.” Bandekar added.
However, the Commercial Taxes Department had exceeded its tax collection estimates for 2016-17 earning Rs 3,199 crore while the revised estimates provided by the department had projected tax collections at Rs 3,078 crore.
Similarly, in 2015-16, the department had collected Rs 2,794.71 crore, which was slightly lower than the revised estimates provided by the department, which had projected Rs 2,800 crore.
Officials also maintained that there is no need to worry about the shortfall as there is a provision that in the first five years, the Centre will compensate for the revenue loses.
