As the state struggles with the income deficit, the outstanding tax revenues of traders and businesses are also rising.
It has increased to a whopping over £1,13,198 crore in 2019-20, according to budget documents released by the state on Monday. From the crowd £80,035 crore is a controversial tax amount for which legal disputes and legal remedies have been pending for years and in various courts £33,162 crore is the accumulated outstanding tax revenue that the government has not been able to get back for various reasons over the past few years.
There is also an increase in £9,272 crore compared to 2018-19 when tax revenue was outstanding £1,03,926 crore, according to budget documents released by the State Finance Department.
The budget book has divided the outstanding arrears into two groups – the amount in dispute and the number of years and the amount not in dispute, which however could not be recovered. In addition, the outstanding amount of taxes on jobs and occupations, minor and major minerals, luxury tax, immigration tax, income from land, stamp and registration fees, taxes on vehicles, goods and passengers, electricity tariffs and others
The budget document presented to the state parliament on Monday states that the tax revenue has been outstanding for years and most of the outstanding amount from sales tax and value added tax (VAT) on engine fires and lubricants, which are taken into account, is outstanding £82,391 crore, which is 72.78% of the total arrears. It includes both the controversial amount of £58,242 crore and £24,148 crore still to be recovered.
The second highest outstanding amount comes from central sales £25,052 crore, that is 22.13% of the total outstanding invoices. It also includes controversial crowd of £18,366 crore and £6,686 crore, which have yet to be clarified, according to a document submitted by Finance Minister Ajit Pawar.
Maharashtra stares at a drop of up to £1 lakh crore in its receipts. The revenue was reduced by £57,959 crore and is expected to increase further if the central government does not release the state’s share of the tax collection in a timely manner. Maharashtra is excellent with the central government £50,000 crore.
“Most of the tax that has yet to be reimbursed is blocked due to legal disputes and legal remedies in various courts. We try to encourage people to pay their dues through amnesty programs. We have started an amnesty program twice in the last three years and the response was good, but not very impressive, ”said Manoj Saunik, additional chief secretary of the finance department.
Chief Secretary (reforms) Rajagopal Devara said they could recover £4,500 crore by the last amnesty program and 90,000 cases settled. These were the cases where the disputed amount was very small. “When you go to court, the law takes its own time. For this reason, we develop amnesty plans at regular intervals. This year, too, we planned another amnesty program that could not be introduced. Next year we would develop another program, ”said Devara.