New Delhi, Mar 25 (PTI) The COVID-19 pandemic hit the tax collection of the Delhi government with all components of revenue registering a sharp decline in 2020-21, showed the Delhi Economic Survey, 2021-22, tabled in the Assembly on Friday.

The tax collection of Delhi declined by 19.53 per cent during 2020-21 compared to a 0.16 per cent contraction in 2019-20.

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"The decline in tax revenue collection during 2020-21 is due to COVID-19 Pandemic. All components of tax revenue were sharply declined," read the report tabled by Deputy Chief Minister and Finance Minister Manish Sisodia.

The motor vehicles tax has shown a negative growth of 13.96 per cent, GST (including VAT and other taxes of luxury and entertainment etc.) recorded a negative growth of 19.46 per cent, the report said.

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Tax collections under state excise recorded a negative growth of 18.94 per cent, stamps and registration tax (including land revenue) recorded the highest negative growth of 22.91 per cent in 2020-21.

A growth of 46.13 per cent in tax collection for the year 2021-22 was budgeted by the Kejriwal government.

Total revenue collection of the Delhi government was Rs 41,863.60 crore (5.33 per cent of GSDP) in 2020-21 against Rs 47,135.81 crore(5.94 per cent of GSDP) during 2019-20.

During 2020-21, the revenue receipts decreased significantly with a negative growth rate of 11.19 per cent. The main reason for such deficit is COVID-19 pandemic, the report stated.

Like earlier Central Finance Commissions, Delhi has not yet been covered under the Term of Reference of 15th Central Finance Commission whose term covers the period from 2020-21 to 2025-26, the report pointed out.

The dispensations to be recommended by the Fifteenth Central Finance Commission to the States which include Share in Central Taxes, Grants-in-aid for Local Bodies, Revenue Deficit grants, Sectoral grants, grants for Calamity Relief do not cover Delhi due to this, it said.

The Kejriwal government has already requested the Centre to take suitable measures to cover Delhi under the purview of 15th Central Finance Commission.

Currently, Delhi only gets discretionary grants in lieu of Share in Central Taxes and that too is stagnant at Rs 325 crore since 2001-02. The Normal Central Assistance to NCT of Delhi during 2000-01 was Rs 370 crore and after 20 years, it is still remained as Rs 626 crore as per 2021-22 budget estimated, added the report.

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