This story is from August 9, 2020

Economic recovery underway as tax mop-up picks up

Economic recovery underway as tax mop-up picks up
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JAIPUR: Tax collections in June and July have bounced back, indicating that recovery of economic activities and demand are accelerating after the steep fall due to lockdown in March, April and May. Stamp duty collections rose to Rs 460 crore and Rs 474.70 crore in June and July, respectively, compared to Rs 366.30 crore and Rs 413.70 in June and July last year.
Similarly, revenue from excise also increased to Rs 741 crore and Rs 827.60 crore in June and July, compared to Rs 648 crore and Rs 779.50 crore in the same two months last year.
Secretary finance (Revenue) Prithvi said revival is a good sign that things are coming back to normal. “While some part of the collections could be attributed to the pent up demand as transactions could not take place during April and May due to lockdown, there no doubt a recovery is already underway. We expect the mop-up in August hitting closer to the trend line growth,” said Prithvi.
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In July, Rajasthan along with Madhya Pradesh and Nagaland reported higher GST collections compared to last year. In June and July, the state’s GST collections stood at Rs 1016.30 crore and 1032.80 crore, respectively, against Rs 930 crore and Rs 948 crore in June and July last year.
Prithvi said while the current trend show that the economy is now stabilizing, the revenue losses in April and May will be there and weigh on the overall collections in the current year. TOI had earlier reported that the state government is estimated to have lost around Rs 8,000 crore tax revenues during the March to June period even as revival has started from June.
In fact, after the reopening from last week of May, industry in the state has increased capacity utilization to 70-80%, reflecting demand generation in the economy.
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