India likely to meet FY08 revised tax target

[Sukumar]

New Delhi: India is likely to meet a revised tax collection target of
Rs 5.83 trillion for 2007/08 going by current trends, a junior finance
minister said on Friday.

S.S. Palanimanickam said in a written reply to parliament that direct
tax receipts during April-February were at Rs 2.33 trillion.

Corporate tax receipts at Rs 1.39 trillion while income tax were at Rs
93,112 crore until February, he said.

Receipts from indirect taxes -- excise, customs and service tax --
until January were at Rs 2.21 trillion.

"The revenue collection from direct and indirect tax during the
current financial year 2007/08 has not yet exceeded the target," the
minister said.

"With the current trend of growth in revenue collection, however, the
budget estimate will be exceeded and the revised estimate is likely to
be achieved."

Direct tax collections were up 41 per cent until February from a year
earlier as companies posted robust profits and salaries of individuals
rose during the year. Companies are due to pay their advance taxes in
March 15.

The government collects a bulk of its revenues in the last quarter
ending March every year.

In his budget, the finance minister revised upwards the direct tax
target to Rs 3.05 trillion from an earlier estimate of Rs 2.67
trillion for 2007/08 while indirect tax target was kept almost at the
same level of Rs 2.78 trillion.

Meeting revised tax targets is crucial for a cash-strapped federal
government to fund its extra spending of Rs 43,060 crore for 2007/08

N.Sukumar
Research Analyst
www.kences1.blogspot.com