Direct taxes collection cross One Lakh Crore mark – FM can smile all the way to the bank/next elections
Direct tax collections maintained a growth of over 40% up to the period 21st September 2007. Net tax collections stood at Rs.1,06,095 crore, up from Rs.75,510 crore during the same period last fiscal.
Corporate tax recorded a growth of 42.37% at Rs.67,207 crore, up from Rs.47,207 crore during the previous fiscal. Personal income tax (including FBT, STT and BCTT) grew by 37.47% at Rs.38,819 crore, up from Rs.28,238 crore. The growth in Securities Transaction Tax (STT) was 45.52% and Banking Cash Transaction Tax (BCTT) was 21.36%. Fringe Benefit Tax (FBT) also jumped 87.41%.
In terms of payment types, advance tax increased by 32% and tax deducted at source (TDS) by 48% indicating all-round buoyancy in taxes. Self-assessment tax grew by 81%, indicating better tax compliance levels.
Normally the Finance Minister does not help the ruling party to come back to power as in his anxiety to colllect more revenue he makes enemies all round and his officers who are more loyal than the king help him in bringing down the government. Any one who withdraws his own pure white money from his bank account and is asked to pay a tax on that withdrawal will certainly think twice before voting for the party which made him pay the tax. Of course an advantage is that such people usually don't vote.