Chandigarh yields maximum revenue among UTs

CHANDIGARH: The UT of Chandigarh collected the highest revenue, both tax and non-tax, among UTs under the administrative control of the ministry of home affairs (MHA).
The city contributes 57.53 % of the total revenue (Rs 6,042.40 crore) generated by all the five UTs of Chandigarh, Andaman and Nicobar Island, Dadra and Nagar Haveli, Daman and Diu and Lakshadweep, without legislatures.As per the official figure of 2017, Chandigarh topped the list with a revenue of Rs 3,476 crore. Of this, the tax revenue was Rs 2,192.35 crore and non-tax revenue was Rs 1,283.71 crore. Tax and power contributed 70.69 % and 72.4% of the tax revenue and non-tax revenue, respectively.
Daman and Diu bagged the second spot with a total revenue of Rs 1,140.80 crore of which Rs 1,028.74 crore was contributed by tax and Rs 112 crore by non-tax revenue.
Dadra and Nagar Haveli generated Rs 1,005.90 crore, Rs 974.80 crore tax and Rs 31.10 crore non-tax, while Andaman and Nicobar Islands generated Rs 366.84 crore, of which Rs 88.26 crore was from a tax source and Rs 278.58 crore from a non-tax source.
Lakshadweep had the least contribution with a mere Rs 52.80 crore. Tax revenue in Lakshadweep was meagre with the stamp duty being the largest component. In case of non-tax revenue, power and shipping were the largest sources, contributing 36.50% and 35.53% respectively.
Eye on revenue
Chandigarh administration plans to increase taxes to increase revenue. The administration plans to hike registration fee of both commercial and non-commercial vehicles. The transport department has mooted both the proposals, which are yet to be approved.
The department has proposed to increase the registration fee of commercial vehicles costing up to Rs 20 lakh from 6% to 8%. For vehicles above Rs 20 lakh, it has been proposed that the fee be increased from 8% to 10%. In non-commercial vehicles, the department has proposed to hike the registration fee on vehicles costing upto Rs 20 lakh from 6% to 8%. It has proposed increase of 8% to 10% in registration fee on vehicles costing more than Rs 20 lakh. The transport department charges lumpsum registration fee, excluding GST and other taxes at the time of registration of new vehicles.
On an average, around 2,000 vehicles are in the city every month. The administration earns a revenue of Rs 600 crore in the form of taxes by sale of cars. There are 52 automobile agencies of different cars and two-wheeler manufacturers operating from Industrial Area phases I and II.
Low budget allocation
Despite being the highest revenue contributors, the Union government does not provide the required budget to the administration, thus hindering development works. This fact has been acknowledged by the parliamentary standing committee on ministry of home affairs. For the 2018-19 fiscal, the city received Rs 4,511.91 crore against a demand for Rs 5,908.22 crore.
TABLE:
Name of UT
Tax (Rs in crore)
Non-tax
Total
Chandigarh
2,192.35
1,283.71
3,476.06
Daman and Diu
1,028.74
112.06
1,140.80
Dadra and Nagar Haveli
974.80
31.10
1,005.90
Andaman and Nicobrar Islands
88.26
278.58
366.84
Lakshadweep
1.02
51.78
52.80
TOTAL
4,285.17
1,757.23
6,042.40