The Hindu : National : Gross tax collection up

Online edition of India's National Newspaper
Monday, Dec 05, 2005

National

National

Gross tax collection up

Special Correspondent

Centre's mop-up accounts for 42.5 p.c. of target

NEW DELHI: In keeping with the country's 8 per cent GDP (gross domestic product) growth during the first half of the current fiscal, the Centre's gross tax collection also increased by about 21 per cent to Rs. 1,64,567 crores till October this year.

According to data collated by the Controller General of Accounts (CGA), the Centre's net collection at Rs. 1,16,297 crores was even higher by 24 per cent during the April-October period of 2005-06 after providing for a higher amount of Rs. 47,645 crores to the States. At this level, the Centre's net mop-up accounted for 42.5 per cent of the budgeted target of Rs. 2,73,466 crores set for the fiscal year.

Following the rationalisation of the rates and slabs of income-tax (I-T) in the Budget for 2005-06, the I-T collections were lower during the period, but what boosted the overall tax mop-up were the other levies such as corporate tax, customs duties and service tax.

Till October, the collections through I-T alone amounted to Rs. 25,658 crores as compared to the higher mop-up of Rs. 26,874 crores during April-October in the previous fiscal. However, what is heartening for the Department of Revenue is the fact that I-T collection in October alone this year was nearly three times more at Rs 4,575 crores compared to the Rs 1,699 crores mopped up in the same month in the previous year.

As for corporate tax, the collections increased by nearly 50 per cent to Rs. 38,071 crores in line with the increase in profits seen by India Inc. during the two quarters of the current fiscal. This was despite the fact that the collection during October was markedly lower at Rs. 4,145 crores compared to Rs. 5,072 crores garnered in the same month last year.

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