Direct taxes to cross Rs 3 lakh cr mark in FY08

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New Delhi, Jan 1 (UNI) Even as direct tax collections are set to cross Rs 3,00,000 crore mark in the current financial year, Finance Minister P Chidambaram today declined to make any commitment to moderate taxes in the forthcoming budget.

The tax to GDP ratio during 2007-08 will exceed the target of 11.8 per cent, he told the media on the New Year Day here.

For the first time, direct tax collections would surpass indirect tax collections, the Minister said.

Direct taxes are now the largest contributor to the government exchequer, he added.

During April-December 2007, direct tax collections after paying refunds crossed Rs 2,05,000 crore, registering a growth of 42.36 per cent.

Corporate tax collections grew 39.84 per cent to Rs 1,27,683 crore, while personal income tax, including security transaction tax, fringe benefit tax and banking cash transaction tax, grew by 50.06 per cent to Rs 77,380 crore.

The Finance Minister said the new income tax code is ready and will be released with the discussion papers but he did not give any time frame for it.

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