Some other highlights of the FM Speech
The tax : GDP ratio had indeed increased from 9.2 per cent in 2003-04 to 12.5 per cent at the end of 2007-08. The base of tax payers has also increased: the number of assessees has increased from 3 ,01,78,000 in 2003-04 to 3,25,00,000 in 2007-08. Compliance has also increased, as will be evident from the rate of growth of gross tax revenues. In the four years of the UPA Government, gross tax revenues have increased by 19.9 per cent, 20.1 per cent, 29.3 per cent and 25 per cent (provisional) over the previous year.
The tax administration had indeed become more efficient. The cost of tax collection on the direct taxes side is 60 paise per Rs.100 and on indirect taxes side, 65 paise per Rs.100. As has been acknowledged by many Honourable Members, the cost of collection is perhaps among the lowest in the world. (Is that the reasons why the revenue officers are tempted to look around for other revenues?)