Direct Taxes Exceeds Indirect Tax Revenues

New Delhi: For the first time, the Centre''s net direct tax collections have exceeded its indirect tax receipts, going by the latest tax revenue mobilisation data available with the revenue department. The net direct tax collections have as on date in the current fiscal reached the Rs 2 lakh-crore threshold. Direct tax collections have been reporting hefty growth rates of over 40 per cent this fiscal, increasing expectations that direct tax receipts will exceed indirect tax revenue some time during 2007-08.

Up to end-November this fiscal, customs and excise duty collections had cumulatively reached Rs 1,41,851 crore. Service tax collections increase to October this year stood at Rs 25,420 crore. Direct tax collections surpassing indirect tax revenues is the hallmark of a progressive taxation system since indirect taxes like excise are paid by poorer sections of society on par with a higher income earning individual. Only three private sector companies Tata Steel, Reliance Industries and ICICI Bank figure in the top ten advance tax payer league. The top ten advance income tax payers in the country have cumulatively increased to December 15 this year forked out 30 per cent more at Rs 22,196.7 crore.