Tax mop-up likely to top Budget estimate: Fin Secy
December, 23rd 2009
Buoyed by the healthy growth in advance tax collection, the Government today said the revenue realisation during the current fiscal may exceed the budgetary target notwithstanding low indirect tax collection.
"It is very unlikely that the estimates on the indirect tax will be met, but on the direct taxes front, we are maintaining that it will be more than met," Finance Secretary Ashok Chawla told reporters on the sidelines of the launch of a trading platform for trade receivables, being launched by NSE and Sidbi.
An electronic trade receivables platform eases the physical process of trading in receivable incomes between buyers and sellers through online discounting process.
"So, overall between indirect and direct taxes, the total collection will correspond to the Budget estimate or more," he said.
The advance tax collection rose 20 per cent during the first nine months of the current fiscal compared to the same period last year, with the companies from the automobile, consumer goods and metal sectors leading the pack.
Advance tax payments by industries increased to Rs 1.13 lakh crore from Rs 0.94 lakh crore during the corresponding period last fiscal.
According to the Budget estimate, the Government aims to earn Rs 6.4 lakh crore from direct and indirect taxes during the current fiscal.
The Government expects the direct tax mp-up for the current fiscal to well exceed the budget target of Rs 3.7 lakh crore. At the same time, the indirect tax collection is estimated at Rs 2.7 lakh crore.