Shimla, March 17,
The state’s own tax revenue is set to witness a significant boost, driven largely by a sharp increase in land revenue and stamp duty collections. Budget estimates for 2025-26 project land revenue at ₹1,018.95 crore, a remarkable jump from just ₹7.03 crore in 2023-24. Similarly, revenue from stamp and registration fees is set to grow from ₹440.37 crore to ₹638.08 crore over the same period, reflecting a surge in real estate transactions and property registrations. These developments indicate a shift in the state’s fiscal strategy, with greater reliance on land-related taxation to strengthen its revenue base.
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Alongside these record gains, the overall tax revenue is projected to rise from ₹11,835.29 crore in 2023-24 to ₹16,101.10 crore in 2025-26. State Goods and Services Tax (SGST) remains the dominant contributor, increasing from ₹5,339.89 crore in 2023-24 to ₹6,761.25 crore in 2025-26. However, its share in total tax revenue has declined slightly, from 45.12% to 41.99%, as other revenue streams, particularly land-related taxes, expand at a faster rate.
State excise duty continues to be a key revenue driver, with collections expected to grow from ₹2,692.33 crore to ₹3,250.00 crore. Meanwhile, VAT revenue, though increasing in absolute terms, is witnessing a gradual decline in its share of the total tax pool, signaling a continued transition to GST-based taxation.
Other tax sources such as vehicle taxes, passenger and goods tax, and electricity duty are maintaining steady growth. Electricity duty is expected to rise significantly, from ₹369.07 crore in 2023-24 to ₹689.29 crore in 2025-26, suggesting increased power consumption and possible tariff revisions.
The sharp rise in land revenue and stamp duty collections highlights a growing focus on real estate and property transactions as a major fiscal tool. The trend suggests policy shifts that may include revised land lease rates, stricter enforcement of property tax regulations, or increased commercial land activity. As the state explores new avenues for revenue generation, this shift could have long-term implications for the economy and investment landscape.
