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HYDERABAD: The state government’s 17 percent increase in tax revenue from 2016-17 through 2017-18 is due to an increase in SGST, state sales tax, taxes on vehicles, stamp duty and registration fee, which was 31 percent cents. However, the bulk of tax revenue, 69 percent, came from government excise tax revenue, as highlighted by the CAG’s audit report on government finances for the year ended March 2019.
The CAG noted that tax collection efficiency across all tax departments remained nearly constant year-over-year, while the excise department improved.
According to the report, the state generated Rs 2,808 cr from excise taxes in fiscal year 2014/15, which was up to 9.59 percent of total revenue. In 2018-19, 10,638 rupees were earned, representing an increase of 16.45 percent of total revenue.
The audit found that the merger of villages into communal companies required a higher license fee to be levied on liquor stores. Failure, however, resulted in a brief levying of a license fee of Rs 5.32 billion. In two offices, District Prohibition & Excise Officers (DP & EOs) set the license fee for five liquor stores at a lower rate, resulting in a loss of Rs 5.32 billion. One store was under DP & EO Shamshabad and the other under D&O Warangal.