The Tamil Nadu legislature has established a lofty target of nearly 10% growth in income receipts in the upcoming fiscal year and is placing its hopes in four areas.
The 4 areas include: modifications to the registration price and guideline value, fresh approaches to strengthen the GST’s efficiency of collection, eliminating gaps in the entire supply chain of alcoholic beverages and initiatives to boost revenue from mineral resources.
The government anticipates an increase in revenue of at least 2,000 to 2,500 crores as a result of the decision to enhance the guideline value by restoring it to the rates that were in effect up until June 8, 2017, and cut the registration fee to 2%. One of the representatives of the State finances claims that the increase could reach 4,000 crore.
With the implementation of this policy, the registration cost will decrease from 4% to 2% for deeds of sale, gift, exchange, and non-family member settlement.
Further, as opposed to the current 11%, the total cost for a property purchase will be 9% (5% for stamp duty, 2% for transfer duty, and 5% for registration fee). A 33% increase in the recommended value results from the upward adjustment.
Both transactions and revenue are anticipated to increase on average by 20% to 25%. This year, approximately 33 lakh documents have been recorded so far, with sale deeds making up about 80% of those. The total income for this year is at 16,600 crore.
A data-driven strategy would be used along with strict enforcement to increase the effectiveness of GST collection. The State GST (SGST), a part of the State Own Tax Revenue (SOTR), is expected to generate approximately 68,000 crores of rupees in revenue next year, as opposed to the current year’s revised forecast of roughly 56,500 crores, according to the government.
The SGST revenue for 2021–22 was 46,000 crore. Even though the revenue increased from 983 crore in 2020–21 to 1,179.21 crore in 2021–22, the government believes it is still receiving significantly less from mineral resources than it should.
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