Finance Minister P Chidambaram today parried questions on moderating taxes in the next budget even as direct tax collections this fiscal are set to cross Rs 300,000 crore.The tax to GDP ratio during 2007-08 will exceed the target of 11.8%, he added.Replying to a question on his statement that there was a case for moderation of taxes if voluntary compliance raised tax collection, he said: "Let me recall what I said. If voluntary compliance (in taxes) increases there is a case for moderation. That does not mean the case has been accepted. You make a case for moderation instead of writing imaginary stories."During April-December 2007, direct tax collections after paying refunds crossed Rs 2,05,000 crore, registering a growth of 42.36%.For the first time, direct tax collections would surpass indirect tax collections, Chidambaram said.Corporate tax collections grew 39.84% to Rs 1,27,683 crore, while personal income tax, including security transaction tax, fringe benefit tax and banking cash transaction tax, grew by 50.06% to Rs 77,380 crore.Chidambaram also announced the setting up of a Directorate of Human Resources for direct tax department aimed at restructuring of department for enhancing voluntary tax compliance.
