In the seven months, the department has been able to mop up just 40 per cent of its target. While the same time last year, the department was able to collect about half of the targeted sum. According to IT officials, "Our collection target this year is 22 per cent higher than actual collections last year. In 1997-98 it was Rs 16,000 crore.

This year the target is higher by Rs 4,000 crore. With five months to go, we may not be able to meet the target unless certain concessions to industry, particularly export firms, are withdrawn. The government should at least introduce a minimum alternate tax." Tax provisions by over 2,000 companies have added up to just 2 per cent of the total collections, said sources. The economy has not picked up as expected, and with profit margins of a majority of companies taking a beating, collections have been dismal, said IT officials.