Tamil Nadu to lose nearly Rs 3,000 crore due to slump in sales tax revenue
Chennai: Tamil Nadu is expected to lose around Rs 2,750 crores due to slump in sales tax revenue, stamp duty registration and motor vehicle registration.
Sources in the state government said there has been a 20 to 25 per cent decline in tax collection and other revenue due to demonetisation of Rs 500 and Rs 1,000 notes.
While sales tax revenue is expected to go down by over Rs 2,000 crore, the government is likely to lose Rs 85 crore in stamp duty registration and Rs 53.4 crore in motor vehicle registration.
If the situation fails to improve in the next few days, the percentage would increase, the sources said.
TASMAC, the sole liquor vendor in the state, is estimated to have lost Rs 80 crores in the past six days and the decline is expected to continue through November as the cash crunch situation is unlikely to get better by then.
The firm has been reporting an average of 18 to 20 per cent drop in its daily sales because of less money in the hands of tipplers. “The reason is not just because we refuse to accept Rs 500 and Rs 1,000 notes, it is also because people don’t have money in their hands,” a source in the TASMAC said.
However, local bodies and Chennai Metro Water are accepting the older denomination notes for paying taxes and monthly bills. The Corporation and metro water have been receiving additional revenue ranging from Rs 3 crore to Rs 5 crore daily. Interestingly, the Chennai and Coimbatore Corporations recorded an all-time high in property tax collection, raking in nearly Rs 10 crore.