The Hindu Business Line : Net direct tax collection increases 16.88% in May

New Delhi, June 5 The Centre’s net direct tax collections grew 16.88 per cent in May at Rs 11,919 crore (Rs 10,198 crore). However, the net collections grew by modest 5.77 per cent in the first two months of the current fiscal at Rs 24,158 crore (Rs 22,840 crore), pulled down by a 3.19 per cent decline in April collections.

The growth rate seen in April-May 2009 was lower than the 10 per cent growth targeted for 2009-10.

The growth rate for April-May 2009 was well below the near 70 per cent year-on-year increase recorded in the same months in each of the previous two fiscal years. The global financial meltdown and its adverse impact on the Indian economy seem to have affected the growth rate in direct tax collections.

In April-May 2009, corporate tax collections grew 5.56 per cent to Rs 8,578 crore (Rs 8,126 crore). Corporate tax collections had registered 68.05 per cent growth in the first two months of 2008-09.

On the personal income-tax (including Fringe Benefit Tax, Securities Transaction Tax, and Bank Cash Transaction tax) front, the net collections grew 5.92 per cent at Rs 15,559 crore (Rs 14,690 crore). This category had seen a 73.05 per cent growth in the same period last year.

The overall refund outgo during April-May 2009 increased by 26.19 per cent to Rs 11,375 crore (Rs 9,014 crore). Refunds to non-corporate taxpayers grew 61.7 per cent to Rs 2,149 crore (Rs 1,329 crore), an official release said.

During April-May 2009, both securities transaction tax (STT) and fringe benefit tax (FBT) collections declined to Rs 795 crore (Rs 1,057 crore) and Rs 103 crore (Rs 109 crore) respectively.

Direct tax collections have been buoyant in the last five years on the back of record economic growth of five-year average of 8.5 per cent. In 2009-10, the Centre has targeted direct tax collections of Rs 3,80,000 crore.

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