After starting on a promising note, the growth rate of corporate tax after the second instalment of advance tax has dropped to 8.9 per cent. In absolute terms, total direct tax revenue has touched only Rs 17,381 crore till September 15, compared to Rs 16,006 crore in 2001-02.
Corporate tax collection doubled to Rs 3,990 crore in the first quarter of 2002-03, compared to Rs 2,085 crore during April-June 2001. This phenomenal growth pushed the growth rate of net direct tax collections by 30 per cent during April-June this fiscal. However, for April-September 15, the growth rate has slipped to 8.6 per cent.
The tax revenue mopped up so far (April-September 15) is, therefore, just above 19 per cent of the total direct tax target for 2002-03, set at Rs 91,140 crore. In the current fiscal year, the government has estimated a 33 per cent increase in collection over 2001-02. The dip in the growth rate means the budgeted tax target for the year may have to be revised before the fiscal is over.
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The latest tax collection figures (till September 15) show that corporate tax revenue has grown to Rs 5,464 crore, compared to Rs 5,020 crore in the same period last fiscal.
September 15 was the last date for filing the second instalment of 25 per cent of the annual estimated tax liability for companies.
The disaggregated corporate tax collection trends reported by the major zones show that Mumbai, which accounts for the largest percentage of collections, has grown at the rate of 8.01 per cent, while Delhi is at a dismal 4.41 per cent. Chennai is at a relatively healthy 12.36 per cent, while Kolkata registered a drop in collection.
The growth rate of income-tax revenue has also been only 8.5 per cent at Rs 11,917 crore, compared to Rs 10,987 crore in the same period last fiscal.