The Centre's tax kitty has fallen by over Rs 20,000 crore compared to the truncated target of Rs 6.26 lakh crore for 2008-09 as the economy slowed and the government cut indirect tax rates to spur economic growth.
Direct tax collection stood at Rs 3.37 lakh crore during the last fiscal, which is short of Rs 3.45 lakh crore revised target, Revenue Secretary P V Bhide told reporters here today.
The target for direct tax collection was revised downwards from budget estimates of Rs 3.65 lakh crore for 2008-09. The actual collections were, however, 8 per cent up over Rs 3.12 lakh crore in 2007-08.
Indirect tax collections stood at Rs 2.65 lakh crore against revised target of Rs 2.81 lakh crore for 2008-09. The indirect tax collections were also revised downwards from Rs 3.21 lakh crore in the budget estimates.
The actual collections for indirect taxes were lower than Rs 2.81 lakh crore realised in 2007-08.
Bhide, who was here to attend the passing out of 61st batch of Indian Revenue Service (IRS) at the National Academy of Direct Taxes (NADT), said the cut in duty taxes reduced the indirect tax collections.
The government had cut excise duty by six per cent and service tax by two per cent in three stimulus packages to propel the economy. Bhide also said the new direct tax code would be brought in soon.