Direct tax mop-up target for Mumbai raised 25%

The Central Board of Direct Taxes has raised the collection target for the Mumbai zone by around 25 per cent to Rs 44,000 crore for fiscal 2004-05.

Mumbai accounts for over 40 per cent of the total direct tax collections in the country.

In the previous fiscal, Mumbai accounted for Rs 35,000 crore as direct taxes as against the target of Rs 32,000 crore.

According to tax officials, the raising of the direct taxes target is in line with the government's focus on tax revenues.

They added that the government has set recoverable arrears as a major source of funds to plug the revenue deficit.

While recoverable dues in the economy are estimated to be around Rs 54,000 crore, most of these dues are blocked in scam cases, liquidation matters and defunct companies. Therefore, a majority of the amount is locked in the special court.

Meanwhile, gross tax collections for the Mumbai zone in the first quarter of 2004-05 grew 33 per cent to Rs 8,782 crore as against Rs 6,588 crore in the first quarter of the previous fiscal.

In gross terms, the surge in collections has been mainly on account of a 73 per cent increase in income tax collections to Rs 3212 crore (Rs 1852 crore in the corresponding period last year).

Interestingly, income tax refunds also shot up 253 per cent to Rs 2975 crore (Rs 842 crore). Corporation tax mop-ups has risen by 17 per cent at Rs 5570 crore.

The department expects to garner an increased amount from the 2 per cent cess on tax imposed by the new government.

As far as the turnover tax is concerned, it is yet to be clarified whether the Central Board of Excise and Customs or the Central Board of Direct Taxes will have jurisdiction over the levy.