Perks tax mop-up fails to pick up

Fringe Benefit tax (FBT) collections have failed to pick up. The latest data compiled by the income-tax department's online tax accounting system (OLTAS) shows additional collections of only Rs 500 crore between September 30 and October 15. Overall FBT collections have increased to Rs 1,313 crore up to October 15.

The FBT collections up to September 30 had been estimated at Rs 518 crore. The ministry is now conducting an internal assessment to analyse why the collections failed to pick up. Officials say one factor could be lower compliance to file the tax among small business houses.

The tax department, however, has made a killing from the buoyancy in the stock market through the Securities Transaction Tax (STT) with collections touching nearly Rs 300 crore in just the last fortnight.

The overall STT mop-up up to October 15 is Rs 1,304 crore against Rs 1,029 crore up to September 30. Collections from the banking cash transaction tax (BCTT) has been Rs 110 crore.

Next week, Finance Minister P Chidambaram is set to review the performance of the tax department in the context of the budget announcements which includes the FBT.

According to the direct tax collection data available up to October 15, corporation tax collections increased by 25 per cent to Rs 35,476 crore as against Rs 28,407 crore during April-October 15, 2004-05.

Similarly, income-tax collections excluding FBT, BCTT and STT increased around 9 per cent to Rs 22,135 crore compared to Rs 20,292 crore during April-October 15 last year.

Income-tax collections inclusive of the FBT, BCTT and STT, however, performed better, registering an increase of around 22 per cent to Rs 25,250 crore during April-October 15, as against Rs 20,705 crore in the corresponding period last year.