Madhya Pradesh: Amid COVID-19 woes, state earns greater revenue from liquor, fuel in 2020-21

Madhya Pradesh: Amid COVID-19 woes, state earns greater revenue from liquor, fuel in 2020-21

Replying to a question submitted by Congress MLA Mevaram Jatav, state Finance Minister Jagdish Devda said the revenue collection from Value Added Tax (VAT) on liquor increased to Rs 1183.58 crore during 2020-21 from Rs 938.28 crore in 2019-20, a rise of 26.14 per cent, while this figure was Rs 632.27 crore in 2018-19.

PTIUpdated: Tuesday, August 10, 2021, 05:40 PM IST
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State assembly | File photo

Bhopal (Madhya Pradesh): The Madhya Pradesh government has earned 26.14 per cent higher revenue from the sale of liquor and collected 22.39 per cent more tax from the sale of petrol for the financial year 2020-21, which was dominated by the COVID-19 outbreak, when compared to 2019-20, the state Assembly was informed on Tuesday.

Replying to a question submitted by Congress MLA Mevaram Jatav, state Finance Minister Jagdish Devda said the revenue collection from Value Added Tax (VAT) on liquor increased to Rs 1183.58 crore during 2020-21 from Rs 938.28 crore in 2019-20, a rise of 26.14 per cent, while this figure was Rs 632.27 crore in 2018-19.

He said revenue collection from VAT on petrol increased from Rs 4263.42 crore in 2019-20 to Rs 5217.79 crore in 2020-21, a rise of 22.39 per cent. The VAT collection on petrol in 2018-19 was Rs 3779.06 crore.

As per the minister's reply, the state government collected Rs 6690 crore through VAT on diesel in 2020-21, which was 15.88 per cent more than the Rs 5773.65 crore collected in 2019-20, while the VAT collection for 2018-19 was Rs 5256.89 crore.

The House was informed that the state government was realising 33 per cent VAT on petrol, besides an additional tax of Rs 4.5 per litre and one per cent cess on turnover.

Similarly, the state government was realising 23 per cent VAT on diesel along with Rs 3 per litre of additional tax and one per cent cess on turnover.

It also said VAT on sale of liquor from shops was 10 per cent and it was 18 per cent when served in restaurants and bars.

During the discussion on this question, Devda said the BJP regime had earlier reduced VAT on petrol to 28 per cent from 31 per cent but the previous Congress regime had increased it to 33 per cent.

Similarly, he said, the BJP government had reduced VAT on diesel to 18 per cent from 22 per cent but the Kamal Nath dispensation increased it to 23 per cent, adding that VAT on diesel and petrol in Congress-ruled neighbouring Rajasthan was higher.

Meanwhile, Leader of Opposition and senior Congress leader Kamal Nath demanded that taxes be reduced to give relief to people and challenged the state government to allow a discussion on inflation and accept a calling attention proposal submitted by the Congress on it.

Later, protesting against inflation, Congress MLAs trooped into the Well of the House, leading to an adjournment by the speaker till noon.

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