Total tax revenue from corporate, income-tax,
custom & excise duties and service taxes is poised to rise to Rs. 5,80,816
crore by 2009-10 and subsequently touch whooping volumes of Rs.10,69,486 crore
by 2014-15 from Rs. 46,7848 crore in fiscal 2006-07, according to The Associated
Chambers of Commerce & Industry of India (ASSOCHAM).
The growth in total tax collections would increase
mainly on account of higher collections of corporate and service taxes as also
partly in income tax, customs and excise duty, says ASSOCHAM Eco Pulse on
Tax Revenue : The Future Growth Path.
Releasing the Eco Pulse, ASSOCHAM President, Mr.
Venugopal N. Dhoot said that service tax which was imposed since 1994 with three
services in its net, registered a growth of 9200% between 1994 to 2006-07.
However, in 2006-07, the service tax was imposed on 106 services. In
2006–07, the total revenue earned through service tax was Rs.38169 Crores which
will go up to Rs. 1,36,392 Crores and register a growth of 257% in 2009-10. In
2014-15, the service tax revenue is likely to touch Rs.7,35,075 Crores with
percentage growth of 1825.
In the meanwhile, ASSOCHAM Eco Pulse points out
that growth in corporate, income-tax, excise & custom duties volumes have
respectively risen from a whooping level of 1549%, 946%, 280% and 244%
immediately after liberalisation in 1992-93 to 2006-07, showing that tax
compliance increased in the period as a result of partial simplification in tax
administration and increased economic activities that motivated taxpayers to
avoid tax evasion which was so rampant during days of isolated economy.
The ABB points out that while the central
government collected corporate tax to the tune of Rs.8899 crore in 1992-93, the
same rose to Rs.14649 crore in 2006-07 an increase of a little over 1549%.
In fiscal 2006-07, share of corporate tax in total tax revenue went up to 31.3%
which was 11.9%, way back in 1992-93. The corporate tax collection would
further go up to Rs.204784 Crores in 2009-10 before settling to Rs.521630 Crores
by 2014-15.
As regards to income-tax, in 1992-93 the revenue
collected by government was Rs.7888 crore which went up to Rs.82510 crore
in 2006-07, showing a growth volume of 946%. This has happened largely due
to better tax compliance and increased number of taxpayers and much lessor
harassment from authorities concerned. The share of income tax in total
tax revenue while was 10.6% in 1992-93, it went up to 17.6% in fiscal 2006-07.
Projections for Income Tax collections for 2009-10 are made for Rs.119443 Crores
and Rs.259522 Crores for 2014-15.
Excise and custom duty, the volumes for tax
collections have risen respectively by 280% and 244% despite rationalisation and
reduction in their duty structure which motivated large number of taxpayers to
voluntarily show transparency in their accounts books. As a result
of which, the tax collection has gone up. The revenue from customs to the
government in 1992-93 was Rs.23776 crore and in case of excise, it was Rs.30382
crore, the collections from these two sources respectively went up to Rs.81800
crore and Rs.117266 crore showing an increase of 280% and 244%, reveal the
ASSOCHAM Eco Pulse. Excise and Customs collections respectively projected
for 2009-10 comprise Rs.152874 Crores and Rs.87899 Crores against
Rs.735075 Crores and Rs.126810 Crores for year 2014-15.
The excise duty share in total tax revenue
while was 41.3% in 1992-93, it declined to 25.1% in 2006-07 and as regards to
customs duty share in total tax revenue which was 31.9% in 1992-93 fell down to
17.5% in 2006-07, as a result of massive structuring on excise and
customs. The volume revenue increased exponentially because of increased
economic activities and substantial growth in the number of industrial
units.
