India’s direct tax collections up 71 percent

June 18th, 2008 - 7:56 pm ICT by IANS  

A file-photo of P. Chidambaram

New Delhi, June 18 (IANS) India’s direct tax collections continued to grow at a robust pace to log a 71.28 percent rise in the first two months of this fiscal at Rs.228.4 billion ($5.7 million), against Rs.133.35 billion in the like two months of the previous fiscal. The growth in personal income tax was the highest with 73.05 percent at Rs.146.9 billion, against Rs.84.89 billion, while the corporate tax mop-up was higher by 68 percent at Rs.81.26 billion against Rs.48.35 billion.

“Direct tax collections have been witnessing a high growth due to better tax compliance by the taxpayers and an improved tax administration,” a statement issued by the finance ministry said Wednesday.

Finance Minister P. Chidambaram said last week that the Central Board of Direct Taxes (CBDT) would meet soon to revise upward the official estimate on direct taxes for this fiscal, set at Rs.3,650 billion.

“For 2007-08, direct tax collection was Rs.3,144.68 billion. This represents an increase of 36.62 percent over the previous fiscal, and 117.56 percent of the original budget estimates,” he said.

“In four years, this has been tripled - that is from Rs.1,050.88 billion to Rs.3,144.68 billion. This is a remarkable achievement and I compliment the department for this extraordinary achievement,” he added.

“The cost of collection has come down to 0.54 percent. For every Rs.100 collected, the department spends only 54 paise. Now, this is the lowest in any jurisdiction in the world.”

Tags: , , , , , , , , , , , , , , , , ,

Posted in Business |