West Bengal's Tax Revenue Expected to Increase by 11.26% Driven by SGST and State Excise
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Synopsis
The tax revenue of West Bengal is set to rise by 11.26% by March 31, 2026, largely driven by State Goods and Service Tax (SGST) and state excise, according to budget estimates.
Key Takeaways
- Projected tax revenue growth of 11.26% by 2026.
- SGST to contribute 44.22% of total state tax revenue.
- State excise expected to account for 20.03% of revenue.
- Non-tax revenue driven primarily by interest receipts.
- Heavy reliance on state excise raises economic concerns.
Kolkata, Feb 12 (NationPress) The projected tax revenue for West Bengal is expected to grow by 11.26 percent by March 31, 2026, primarily driven by just two out of the twelve components: State Goods and Service Tax (SGST) and state excise.
According to the budget estimates for the fiscal year 2025-26, the state's own tax revenue is anticipated to reach Rs 1,12,543.80 crore, marking an 11.26 percent increase from the revised estimate of Rs 99,863.16 crore for 2024-25.
The SGST is projected to account for 44.22 percent of the total tax revenues collected by the state during the fiscal year under review, as indicated in the budget documents.
Conversely, the state excise is expected to contribute 20.03 percent to the overall tax revenue during 2024-26.
By March 31, 2026, the SGST collection is set to rise to Rs 49,771.98 crore, up from Rs 45,872.52 crore reported as of March 31, 2025, according to revised estimates.
Similarly, the expected collection from state excise by March 31, 2026, is Rs 22,550.33 crore, an increase from Rs 20,444.45 crore as of March 31, 2025, based on revised estimates.
Experts suggest that while West Bengal is not alone in relying heavily on state excise for tax revenue, such dependence could signal economic concerns.
In terms of non-tax revenue, interest receipts will be the largest contributor during 2025-26, estimated at Rs 4,626.27 crore, followed by other non-tax revenues at Rs 4,231.06 crore.
