Chief minister Pramod Sawant said Goa government will ask the Centre to continue to compensate states for an additional five years beyond 2022, for loss of revenue due to the implementation of the Goods and Services Tax (GST).
Speaking to reporters after delivering his first budget speech, Sawant said that presently the state suffers a shortfall of 16% in GST collections compared to earlier tax collections. “We are going to ask for a five-year extension from the Centre,” Sawant said.
In the 12 months since the midnight rollout of the GST regime, Goa has seen its indirect tax base widen, but has been unable to catch up with earlier tax collections. “It takes time for GST to stabilise and if we go for anextension for an additional five years then the GST collections will stabilise,” he said.
Officials with the department of commercial tax and state GST said that indirect tax payers had increased by 16,000, since July 2017, but the state has seen a consistent shortfall in the indirect tax revenue. In 2017-18, the protected revenue for the state government of the subsumed taxes on an average was supposed to be Rs 236 crore per month. Against this, the state earned just Rs 200 crore. “Revenue mobilisation remains the key to attaining the budgeted targets, as the GST stabilises and mining resumes, it should boost the state’s revenue capacity and support the resumption of fiscal consolidation,” Sawant said.
Source- Times of India.