Tax collection exceeds budgetary estimates

For the first time in recent history, actual total tax collections for 2006-07 have exceeded the budget as well as revised estimates.

The central government's indirect tax collections for 2006-07 stood at Rs 2,40,896 crore, Rs 4,694 crore higher than the revised estimate of Rs 2,36,202 crore. The budget estimate for indirect tax collections was Rs 2,29,533 crore.

Direct tax collections stood at Rs 2,29,181 crore in the same period, marginally higher than the revised estimate of Rs 2,29,007 crore, but Rs 18,762 crore higher than the budget estimate of Rs 2,10,419 crore.

"Higher GDP growth, better compliance and effective tax administration have contributed to the higher tax collections," Finance Minister P Chidambaram said here today. He praised the revenue department for the good performance.

Collections from Customs duty fetched the central government Rs 86,294 crore during the year, significantly higher than the revised target of Rs 81,800 crore and the budget estimate of Rs 77,066 crore.

Excise collections stood at at Rs 1,17,250 crore, higher than revised estimate of Rs 1,16,233 crore, but slightly less than the budget estimate of Rs 1,17,967 crore.

In the case of service tax, the collection was Rs 37,352 crore, slightly less than the revised estimate of Rs 38,169 crore. Chidambaram attributed the shortfall to ambitious revised target as compared to the budget estimate of Rs 34,500 crore.

On the direct tax side, corporation tax collections fell short by Rs 2,936 crore at Rs 1,43,561 crore, compared to the revised estimate of Rs 1,46,497 crore.

However, personal income tax collections more than made up the shortfall in corporate tax collections. Personal income tax collections stood at Rs 85,620 crore, Rs 3,110 crore higher than the revised estimate of Rs 82,510 crore.