Govt's Tax kitty swells as economy chins up
With economy on a roll, trade and industry booming, Govt's tax collection surged by 20% at about Rs 2,63,570 cr till Jan 2005-06.india Updated: Feb 11, 2006 20:50 IST
With economy on a roll, trade and industry booming, government's tax collection surged by 20 per cent at about Rs 2,63,570 crore till January 2005-06 raising hope that the budget target will be met this time.
While direct taxes have grown by 27 per cent to Rs 1,09,585 crore, indirect taxes were up by 16.2 per cent at Rs 1,53,988 crore during April-January 2005-06, official sources said.
Despite the hike in exemption limit and adjustment of tax slabs, Income tax collections were up by 35 per cent at Rs 44,491 crore till January.
Though rise in salaries and widening of taxpayers' base have contributed to the buoyancy in tax collection, the income tax kitty fattened mainly due to the contribution of two new taxes -- Fringe Benefit Tax (Rs 2,744 crore) and Banking Cash Transaction Tax (Rs 221 crore).
The stock market boom has helped government to garner a tidy Rs 1,957 crore from Securities Transaction Tax.
The three taxes -- FBT, BCTT and STT -- contributed Rs 4,922 crore to the Exchequer till January.
With higher earnings of India Inc, Corporate tax collection also went up by 21 per cent to Rs 65,094 crore.
On the indirect tax front, Customs collections were up by 14.6 per cent, while excise grew by 10.8 per cent and services tax logged a whopping 66.2 per cent growth.
Indirect tax collections grew by 16.2 per cent at Rs 1,53,988 crore till January this fiscal from Rs 1,32,501 crore during the same period of 2004-05.
The manufacturing boom came as a boon for the tax authorities as excise duty collections grew by 10.8 per cent to Rs 85,030 crore during the first 10 months of this fiscal.
Excise, which was witnessing single digit growth till December, surged after a robust show in January when it grew by 20.6 per cent at Rs 10,010 crore. As India's external trade sustained high growth and petroleum prices continue to rule high, customs duty collection grew by 14.6 per cent at Rs 52,754 crore till January this fiscal from Rs 46,029 crore in the same period last fiscal.
The ongoing boom in services sector resulted in a 66 per cent growth in Service Tax at Rs 16,205 crore till January this fiscal compared to Rs 9,751 crore in the year ago period.
The robust growth in tax collection reflects the high 8.1 per cent growth in economy estimated by CSO for this fiscal.
The economy had logged 8.1 per cent growth in the first half and hopes are high that it will only improve in the second half of 2005-06. This will, in turn, push up tax collection also.
Government has budgeted a net tax collection of Rs 2,73,466 crore for this fiscal after providing for refunds and states' share of central pool of revenue.