Tamil Nadu scored double-digit growth rates in collection of commercial taxes and registration during 2018-19.
As for the gross collections of commercial taxes, the growth rate was 22.46% and in the case of registration of documents, 21.37%.
Specific reasons apart, the broad message that has emerged out of the development is that the State is showing stable signs of economic recovery after demonetisation in November 2016 and introduction of the Goods and Services Tax (GST) in July 2017, officials of the Commercial Taxes and Registration Department indicate.
To the pleasant surprise of the officials who were originally anxious about the adverse impact of the GST on finances of the State government, the post-GST situation has revealed that Tamil Nadu is as good a consumption State as a manufacturing State.
The degree of tax buoyancy, though not very high, has been “reasonably good,” the officials point out. Prior to the GST launch, the State governments of Tamil Nadu, Maharashtra and Gujarat had nursed apprehensions that the GST would not be beneficial to them as it is destination or consumption-based tax.