Friday October 5, 02:08 AM
Small cities outsmart metros in tax mop-up, again
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By Economy Bureau
Even as the government remains worried about a slowdown in the economy, direct tax collections maintained a growth of over 40% for the first six months period of this fiscal and stood at Rs 1,11,055 crore, up from Rs 79,208 crore during the same period last fiscal. According to official data released by the government on Thursday, once again small towns have registered higher growth in tax collections compared to the big cities. Growth in overall tax collections, including corporate and personal income tax, in small cities has been significant. Patna recorded the highest growth at 96.5% to total Rs 1,010 crore. Mumbai was the only metro, which stood among the top five cities in direct tax collection growth. Direct tax collections of the country s financial capital grew by 73.6% to Rs 42,973 crore till September 30. Lucknow witnessed a growth of 54% in tax collections to stand third at Rs 811 crore. Meanwhile, tax collections in Chandigarh increased by 47.5% to Rs 3,439 crore, followed by Pune, which recorded a growth of 45.5% to total Rs 4.552 crore in direct tax collection. Corporate tax collections grew by 41% to touch Rs 72,240 crore till September 30 this fiscal, up from Rs 49,813 crore in the corresponding period last fiscal. Bihar and Jharkhand witnessed the highest growth in corporate tax collections at a whopping 265% to stand at Rs 451 crore as compared to only Rs 123 crore till September last year. On the other hand, corporate tax collections fell to -34% in Vidarbha region. Personal income tax, including fringe benefit tax (FBT), securities transactions tax (STT) and banking cash transaction tax (BCTT), rose by 39% at Rs 40,744 crore from Rs 29,329 crore in the corresponding period last fiscal. STT grew by 48%, BCTT by 17% while FBT witnessed a growth of 103%. Surprisingly, Vidarbha, infamous for its farmer suicides and agricultural distress, recorded the highest growth in personal income tax collections at 83%, while it was the lowest in the north-eastern region at -17%. Mumbai region recorded a growth of 40% in personal income tax and the Delhi region witnessed a growth of 29% in personal income tax. The government has set a target of collecting Rs 2,67,490 crore through direct taxes this fiscal. Finance ministry officials, however, are confident that this target would be surpassed easily and direct tax collections may in fact touch Rs 3,00,000 crore.
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