Patna, Oct. 15: The economic boom and the perception of improved law and order are being seen as the twin reasons for the record direct tax collection registered by Bihar and Jharkhand in the first half of the current fiscal.
The Patna zone — which looks after both Jharkhand and Nitish Kumar-ruled Bihar — has mopped up twice the amount it did between April and September last year. The zone’s overall tax collection stands at Rs 1,022 crore as of October 4 against Rs 642 crore during the corresponding period last year, a rise of almost 60 per cent.
The figure includes corporate tax of around Rs 475 crore and personal income tax of Rs 547 crore, which indicates marked improvement in the “service sector as well”. The corporate tax collection has increased 286 per cent, from Rs 123 crore to Rs 475 crore this year.
“We are still in the process of analysing the factors that have helped us trump other zones in the country in terms of direct tax collection. But I can say that the growing health of the region’s economy and our strict tax collection norms have the yielded the results,” said chief commissioner, Income Tax (Bihar and Jharkhand), Rajiva Deva.
“The collection,” said Deva, “is of course indicative of the overall growth in the economic health of the region. But Jharkhand has yielded more than Bihar.”
Jharkhand has contributed about Rs 700 crore against Bihar’s share of Rs 323 crore in overall tax collection. “But even that is quite a sum and shows that Bihar is gaining in economic empowerment given that it does not have a large industrial and mineral base,” said a senior IT official.
Tax experts, primarily chartered accountants and corporate lawyers, attribute the spurt in tax collection in Jharkhand to a buoyancy in the steel sector, rise in procurement of ores, growth in rolling mills and transportation.
Bihar too has its reasons for contributing handsomely. “The present Bihar government has sharply increased its budgetary allocations in different infrastructure building sectors. For instance, the state has made a budgetary allocation of over Rs 3,000 crore for building roads and Rs 1,000 crore for constructing health-related infrastructure.