The tax-GDP ratio, after touching a peak of 11.9% in FY8, declined to 9.6% in FY10 and went up marginally to 9.9% in FY12.
High economic growth was the remedy for improving the low tax-GDP ratio as high growth would ensure higher corporation tax collection. The year we did the best in taxes is the year when we did very well in corporate tax, Bose said at an interactive session organised by the Bengal Chamber of Commerce and Industry.
Amid economic downturn, the government earlier expressed concern about slowing down in corporate tax collection, the larger component of direct taxes.
The governments projected tax revenue collection from corporate tax in FY12 was R3,23,250 crore, while budget estimate of the tax collection for FY13 was R3,73,227 crore.
Bose said the government has already met the revised tax collection target of R1,038,036.61 crore in FY13. "We have exceeded the target for indirect taxes. We are close to the target for direct taxes. So, combining (direct and indirect tax collections) we have certainly met the revised estimates, he said. adding that in another 10-15 days the government would come to know by how it would exceed its revised tax collection. He said the new Large Tax payer Unit in Kolkata would be opened by June this year.