Direct tax mop-up zooms 60%
Direct tax collections have seen a sharp increase of 60% in the period April 1-July 15, ‘06 at Rs 33,000 crore, with both corporate and personal contributing to this impressive growth.
By Deepshikha Sikarwar, TNN |
NEW DELHI: The government’s cash registers are ringing and the emerging trend could well be an early indicator of the growth in the economy. Direct tax collections have seen a sharp increase of 60% in the period April 1-July 15, ‘06 at Rs 33,000 crore, with both corporate and personal contributing to this impressive growth.
The targeted growth rate for direct tax collections was set at 27.73% in the Budget. Riding on the back of a booming economy, corporate tax collections grew by 75% to Rs 18,500 crore in April-July 15, ‘06 . This is against the government’s targeted growth rate of 34% for corporate tax.
The personal income tax collections, including fringe benefit tax (FBT), securities transaction tax (STT) and banking cash transaction tax (BCTT) grew by 42 % to Rs 14,400 crore in the period under review from Rs 10,200 crore in April1-July 15 last year. The targeted growth rate for personal tax mop-up is 19%. Government sources said FBT and BCTT would continue as collections under these heads are showing good growth.
With stock markets witnessing large scale volatility, STT collections of the government spurted to Rs 1,570 crore in April 1-July 15, ’06 as against just Rs 560 crore in the corresponding period last year, a growth of over 280%. FBT and BCTT collection stood at Rs 260 crore and Rs 120 crore, respectively, for the period under review.
“There is buoyancy in the economy in general. Corporate performance has been very good, with Q1 results of companies showing impressive growth. The stock market has also been doing well as compared with last year. These factors could have the major contributors to spurt in collections in April 1-July 15, ‘06,” says Salil Gupta, director, KPMG.
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