No.21/2021-2022

Aizawl, 7th April, 2021 : The Covid-19 pandemic last year harshly affected all governmental and private transactions. The Taxation Department too saw huge loss of revenue, so much so that in April 2020, total revenue gained stood at a mere Rs.14.35 crores.

Tacking stock of this low phase, the officers and staff of the department were given extra motivation to boost up revenue income. Pending Tax Return Files were sent reminders and recovered. Pending Tax Deduction at Sources were traced and recovered too. There were doubts whether the department would be able to achieve the target of Rs.6,00,00,00,000.00 (600 crores) for 2020-2021, but the various restorative measures taken up by the department ultimately paid off. At the end of the Year, the department achieved total revenue of Rs.6,77,83,53,824.00, which exceeded the set target by Rs.77.70 crores.

The total expenditure of the Taxation Department during 2020-2021 was Rs.2209.54 lakhs, which gives a ratio of Rs.30.68 got for every Re.1 spent. Hence, while the Mizoram Government’s Receipt Budget R.E. 2020-2021 shows Rs.6,00,13,27,000.00, the actual Total Revenue Collection stands at Rs.6,77,83,53,824.00, which is Rs.77,70,26,824.00 more than the R.E. In the new 2021-22 budget, the target is now set at Rs.650.000 crores.

Among the departments under the Goverment of Mizoram which generate State’s Own Tax Revenue (SOTR), the Taxation Department has the highest contribution. Below is the SOTR contributed by the department for the last 5 years :

The highest amount of taxes come from the Goods and Services Tax (GST) and below is the chart for GST :

Besides Goods and Services Tax (GST), other major sources of taxes are Mizoram Value Added Tax (MVAT) and Profession Tax. Under MVAT, taxes for Petroleum Products and Liquor are levied, which are not covered by GST. As Total Prohibition has come into force in Mizoram, only Petroleum Products are currently taxed under MVAT. Profession Tax is also got from businessmen and employees.