Net direct tax collection during the fiscal FY09 stands at Rs3.38 trillion, up from Rs3.12 trillion during FY08, registering a growth of 8.33%.
As per available figures, net direct tax collection during the fiscal FY09 stands at Rs3.38 trillion, up from Rs3.12 trillion during FY08, registering a growth of 8.33%. Growth in Corporate Taxes was 10.84% (Rs2.13 trillion as against Rs1.93 trillion), while Personal Income Tax (including FBT, STT and BCTT) grew at 9.09% (Rs1.24 trillion as against Rs1.19 trillion). Growth in Fringe Benefit Tax (FBT) was 12.38% (Rs79.97bn as against Rs71.16bn). Securities Transaction Tax (STT), however, declined by 36.95% (Rs54.08bn as against Rs85.77bn).
Despite economic slow-down and substantial relief to non-corporate taxpayers, direct tax collections exceeded the previous year s collection by about Rs260bn, Corporate tax deducted at source (TDS) registered a growth of 35.4% (Rs616.83bn against Rs454.5bn last year); PIT TDS registered a growth of 16.3% (Rs687.86bn against Rs591.45bn last year); and Central Government TDS registered a growth of 65.39% (Rs33.64bn against Rs20.34bn last year). Taxes collected include an all time high additional tax amounting to Rs312.42bn collected out of tax demand raised by the Income Tax department. This amount consists of tax arrears of Rs100.16bn and current tax of Rs212.26bn.
Collection of direct taxes has more than tripled from Rs1.05 trillion in FY04 to Rs3.38 trillion in FY09 at an average annual growth of 26.75% against an average annual growth rate of 18.86% between 1990-91 to 2001-02. Direct tax as %age of GDP stands at 6.23%, a marginal decline from 6.61% achieved during FY08.
However, direct tax to GDP ratio has increased from 3.81% in FY04 to 6.23% in FY09 as compared to increase from 2.1% in 1990-91 to 3.03% in 2001-02, contributing over 55% of central tax revenues. The cost of collection, which increased to 0.66% during FY09 from 0.54% during FY08, still remains one of the lowest in the world.