| According to tax officials, there is a fear that tax collections in the current quarter might suffer owing to adverse market conditions. Therefore, the meeting will be basically a stock-taking exercise to analyse various market situations and discuss ways to enhance collections. |
| Most industrial houses will be badly affected by the current market conditions, primarily owing to rising oil prices and rocketing inflation rate. The worst affected, however, will be the oil companies and banks. |
| Rising oil prices are likely to badly affect oil companies, which are the major revenue earners for the government. With oil prices breaching $48-49 per barrel, profitability of the oil companies will be affected. |
| Similarly, with the rate of inflation rising above 7 per cent and oil prices still remaining a threat, banks are also likely to get a big blow as treasury profits will be less. This is because with every increase in interest rates, the price of government securities, which form a major part of bank's investment portfolio, goes down. |
| Thereafter, with every depreciation in prices, there is a depreciation loss which have to be provided for out of the profits. To that extent, the tax to be paid by the banks will suffer. |
| For the quarter ended June 2004, State Bank of India led the charts being the highest payer of income-tax amounting to Rs 234 crore. The other top payers were Life Insurance Corporation with Rs 201 crore (Rs 173 crore), Hindustan petroleum Rs 128 crore (Rs 125 crore), Indian Oil Corporation Rs 121 crore (Rs 100 crore), Deposit Insurance and Credit Guarantee Corporation Rs 117 crore (Rs 80 crore), Bank of India Rs 80 crore(Rs 80 crore), Standard Chartered Bank Rs 74 crore (Rs 55 crore) and Citibank Rs 70 crore (Rs 60 crore). |
| There is a conspicuous absence of private corporates in the list of the top tax payers, said sources. |
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