BANGALORE: India collects approximately 30331 billion in the form of tax revenues from all the states. So, which states contribute the most to the collection of taxation and other government revenues? Surely, sales tax continues to be the state's largest source of income.

Per capita personal income is most often used as a measure of relative fiscal capacity. But this measure fails to base tax capacity computation on other important tax bases like the sales and property tax and corporate income taxes.

Here’s the ranking of Indian states on the basis of the projected tax revenues they estimate to earn during the period 2010-2015 as per the Thirteenth Finance Commission as compiled by Yahoo.com.

1.  Maharashtra- 451, 800 crore

One of the major sources of income of Maharashtra is the sales tax collection that includes basically general sales tax and retail sales tax. Sales tax was first introduced in the former Bombay Province in 1946 and it has undergone many reforms all these years. 

On an average, the sales tax in Maharashtra are liable to pay on return of all sales or purchases in a year exceeding 30,000 provided the value of taxable goods during a year is not less than 2,500.

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