Nagpur: The government’s tax kitty has fallen by over Rs20,000 crore compared to the truncated target of Rs6.26 lakh crore for 2008-09 as the economy slowed and the government cut indirect tax rates to spur economic growth.
Direct tax collection stood at Rs3.37 lakh crore during the last fiscal, which is short of Rs3.45 lakh crore revised target, revenue secretary P V Bhide told reporters here on Monday.
The target for direct tax collection was revised downwards from budget estimates of Rs3.65 lakh crore for 2008-09. The actual collections were, however, 8% up over Rs3.12 lakh crore in 2007-08.
Indirect tax collections stood at Rs2.65 lakh crore against revised target of Rs2.81 lakh crore for 2008-09. The indirect tax collections were also revised downwards from Rs3.21 lakh crore in the budget estimates.
The actual collections for indirect taxes were lower than Rs2.81 lakh crore in 2007-08.
Bhide, who was here to attend the passing out of 61st batch of Indian Revenue Service (IRS) at the National Academy of Direct Taxes (NADT), said the cut in duty taxes reduced the indirect tax collections.
The government had cut excise duty by 6% and service tax by 2% in three stimulus packages to propel the economy. Bhide also said the new direct tax code would be brought in soon.