Date:27/04/2005 URL: http://www.thehindu.com/2005/04/27/stories/2005042707131800.htm

Business

Tax collections fall short of target

Special Correspondent

NEW DELHI: Tax collections in 2004-05 at Rs. 3,03,856 crores have fallen short of the revised estimate (RE) of Rs. 3,05,314 crores by a whisker, mainly on account of the scaling down of the excise duty on petroleum products and the lesser mop-up in income tax as a fallout of under-recovery from the public sector oil companies.

Briefing newspersons here on Monday while releasing the tax collection figures for the entire year, the Union Finance Minister, P. Chidambaram, said indirect tax collections grew by over 16 per cent to Rs. 1,71,131 crores. At this level, it exceeded the RE target of Rs. 1,71,120 crores set for the fiscal.

Direct taxes, however, grew by 26 per cent to Rs. 1,32,725 crores, but still fell short marginally by over one per cent of the revised target of Rs. 1,34,194 crores.

This, he said, was mainly owing to lower collections from the banks and under-recoveries from the oil PSUs.

Commenting on the collection figures, Mr Chidambaram said, "I am happy with the collections but not satisfied. As for personal income-tax, I am disappointed."