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This is an archive article published on September 4, 2008

Direct tax kitty swells

Belying fears of an economic slowdown, direct tax collections have gone up by 38.3 per cent in the first five months of the...

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Belying fears of an economic slowdown, direct tax collections have gone up by 38.3 per cent in the first five months of the current fiscal, says an official release. Robust growth of over 35 per cent in direct taxes during the past few years has helped the central government meet Fiscal Responsibility and Budget

Management targets, focus on developmental and social programmes, and declare higher pay and allowances for its employees, says the release.

Rs 84,409 croreDirect tax collections in the first five months of the current fiscal

Rs 61,030 croreCollections in the same period in the previous fiscal

31.85 per centGrowth in fringe benefit tax

Rise in corporate taxes

43.49 per cent

This fiscal Rs 48,450 crore

Previous fiscal Rs 33,766 crore

31.79 per cent

Growth in personal income tax

15.10 per cent

Growth in securities transaction tax

Banking cash transaction tax

BCTC posted a negative growth of 21.36 per cent at Rs 274 crore against Rs 348 crore. But then, this tax was never intended as a revenue-generating measure,but was imposed to keep track of black money.

How it will help

Analysts say robust tax collections are expected to help the government maintain fiscal deficit at 2.5 per cent during 2008-09 despite increase in expenditure in the election year.

 

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