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City property owners get relief from new tax regime, for now
January, 07th 2014

Finance Minister P Chidambaram today met chief commissioners of both direct and indirect taxes to take stock of revenue mop-up.

"Finance Minister today met senior officials of revenue department to review tax collections," a senior finance ministry official said. Both direct and indirect tax collections are below the desired rate.

Gross direct tax collections rose 12.33 per cent to Rs 4.81 lakh crore during the first nine months of this financial year against a growth target of 19 per cent for 2013-14. The government has set a direct tax collection target of over Rs 6.68 lakh crore.

Indirect tax collections grew by 5 per cent to Rs 3.07 lakh crore in the April-November period. Indirect tax estimates may have to be revised downwards by about Rs 30,000-35,000 crore from the budget estimate of Rs 5.65 lakh crore.

Excise collections dropped 5.1 per cent in April-November to about Rs 1.03 lakh crore from Rs 1.09 lakh crore, while customs revenue rose 7 per cent to Rs 1.11 lakh crore. Only service tax managed double-digit growth, of 16 per cent, to Rs 92,095 crore during the April-November period.

Chidambaram, who unveiled a new fiscal consolidation road map in October 2012, is determined not to allow any slippage in the fiscal deficit
target of 4.8 per cent of GDP for 2013-14.

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