Except VAT, all state tax categories show strong growth outlook: Tamil Nadu Finance Secretary

Tamil Nadu’s personal tax income is performing properly throughout most elements, apart from Worth Added Tax (VAT), in response to T Udhayachandran, Principal Secretary-Finance, Authorities of Tamil Nadu.

For 2024-25, the state’s personal tax income is estimated at ₹1,92,752 crore within the Revised Estimates, barely decrease than the ₹1,95,173 crore projected within the Price range Estimates. Within the Price range Estimates for 2025-26, the income is projected to develop to ₹2,20,895 crore. This consists of ₹1,63,930 crore from Industrial Taxes, ₹26,109 crore from Stamps and Registration, ₹13,441 crore from Motor Automobile Taxes, and ₹12,944 crore from State Excise.

“We’re performing exceptionally properly in GST collections, rating among the many high states within the nation. Our growth charge surpasses the nationwide common, and now we have strengthened our tax administration by knowledge analytics to recuperate arrears successfully,” stated Udhayachandran.

GST collections are anticipated to rise by 22.74 per cent to ₹93,620 crore in 2025-26, up from ₹76,277 crore within the revised estimate for 2024-25.

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Nevertheless, he acknowledged sure challenges in digital funds and related areas. “There are some gray areas that want consideration. We’re collaborating with fee aggregators and gathering knowledge to make sure income from the digital economic system flows into our system. We have now additionally written to the GSTN (Items and Companies Tax Community) and are actively engaged on this problem,” he added.

Motorized vehicle tax collections have additionally proven strong efficiency because the funds has projected over 12 per cent growth at ₹13,441 crore for FY26. Whereas the transport automobile phase stays buoyant, four-wheeler gross sales have picked up since January, although the growth pattern stays to be seen.

Income from stamp obligation and registration prices is projected to develop by 14 per cent at ₹26,110 crore. Nevertheless, gross sales tax/VAT collections, which come from petrol and liquor gross sales, proceed to lag, exhibiting decrease growth in comparison with different tax elements. For FY26, gross sales/VAT income is projected to develop at 7 per cent ₹70,311 crore (funds estimate).