Tax collection for 2010-11 would exceed even the revised estimates announced in the recent Budget, revenue secretary Sunil Mitra told FE. ?We will exceed the (RE) target for both direct and indirect taxes,? Mitra said.
He said direct tax collection till March 31 stood at R4.47 lakh crore (inclusive of R6,000 crore from CGS collection of central taxes that is remitted to the direct tax pol), as against the revised target of R4.46 lakh crore.
On the indirect tax side, an amount equivalent to the RE target of R3.36 lakh crore, has already been collected, and another R1,500 crore from the states and customs collections for the last two days of the fiscal ?10-11 have yet to be accounted for. The centre?s gross tax collection for 2010-11 is estimated to be R7.86 lakh crore (RE) as against the budget estimate of R7.46 lakh crore. The upward revision in the tax collection target was due to robust economic growth in the last fiscal. The Budget estimate for 2011-12 is R9.32 lakh crore. ?This year, the budget target we have set is 24.9% growth over BE of last year. As we?re expecting a 9% economic growth which will automatically give us higher tax buoyancy,? Mitra said.
Customs collection up to March 29 stood at Rs 1.32 lakh crore, while the service tax mop-up was R70,200 crore. The country?s GDP is expected to grow 8.6% in 2010-11.
The buoyancy in indirect tax collections during the last fiscal was also due to partial withdrawal of the fiscal stimulus in the Budget 2010-11.
In the Budget 2010-11, finance minister Pranab Mukherjee hiked excise duty by 2% to 10%.