For the first time in recent history, the actual collections in direct and indirect taxes have exceeded both the Budget estimates and the revised estimates.
The revenue collections data for fiscal 2006-07 released by the Union Finance Minister, Mr P. Chidambaram, here today showed direct tax collections at Rs 2,29,181 crore and indirect tax collections at Rs 2,40,896 crore.
In the case of direct taxes, the Budget estimate was pegged at Rs 2,10,419 crore, but later revised upwards to Rs 2,29,007 crore.
For indirect taxes, the Budget estimate had been pegged at Rs 2,29,533 crore and later revised upwards to Rs 2,36,202 crore.
"A higher GDP growth, better compliance and better tax administration were the main factors behind this strong revenue collection performance," Mr Chidambaram said.
The data also validates the shift away from indirect taxes to direct taxes in the post-reform period, with the share of direct taxes in gross tax revenues of the Centre touching 48.8 per cent in 2006-07. In 1990-91, less than a fifth of Centre's gross tax revenues came from direct taxes.
Asked whether he sees the proportion of direct taxes in the gross tax revenues of the Centre to go up in the coming years, Mr Chidambaram said that he expects this trend to continue. Customs collections in 2006-07 stood at Rs 86,294 crore, higher than the budget estimate of Rs 77,066 crore and revised estimate of Rs 81,800 crore.
On the other hand, excise duty collections at Rs 1,17,250 crore was higher than the revised estimate of Rs 1,16,233 crore, but slightly lower than budget estimate of Rs 1,17,967 crore.
The service tax collections of Rs 37,352 crore in 2006-07 is lower than the revised estimate of Rs 38,169 crore, but higher than the budget estimate of Rs 34,500 crore.