Just two months after it was implemented in Punjab, Value Added Tax (VAT) has upped the tax revenue in the state by over 35 percent.

Excise and Taxation Minister Sardool Singh said in the month of April alone, tax collections from VAT were nearly Rs.4 billion ($91 million). Compared to this, the sales tax collection in April last year was Rs.2.88 billion.

The minister said the state government had decided to exempt exporters from paying VAT to boost exports from here. He said businessmen and industrialists had ensured smooth implementation of VAT and tax collections had improved.

Singh said the Punjab government was not ignorant of the problems of the trading community and had lowered the tax rate from 12.5 percent to just four percent in case of 52 select items. In case of certain other items, VAT was not imposed at all.

The Punjab government is trying to allay the apprehensions of traders on VAT and field officers have been directed to educate traders on the benefits of VAT, a spokesman said here.