Direct Tax target to be achieved: FM

New Delhi, Apr 10 (UNI) Saying that direct taxes will need to be a growing component of the total tax kitty in the years to come, Finance Minister P Chidambaram today said the revised target in this regard of Rs 2,29,272 crore for 2006-07 would be met.

The Finance Minister described direct taxes as the core of the taxation policy of the future adding that in a growing economy more and more taxes would be in the nature of direct taxes for a more equitable tax structure.

Mr Chidambaram made these remarks while launching the video conferencing facility of the Department of Income Tax here.

"For the last year, under the revised estimates an ambitous direct tax collection was fixed at nearly 2,29,000 crore. I am confident that when the final data is out, we would achieve the target," he said.

A target of Rs 2,67,000 crore has been fixed for direct tax collections for the current fiscal.

Mr Chidambaram said this can be achieved if tax officials developed faith in technology and kept communication channels open.

Besides, there was need for pernnially upgrading the quality of information with the department and sharing such information with all field formations.

The facility connects North Block to 46 cities, headed by chief Commissioners of Income Tax and the Director General of National Academy of Direct Taxes.

Underlying the importance of Central Board of Direct Taxes and Income Tax Department, Mr Chidambaram said an increasing number of entities - corporates and individuals - in a fast growing economy will end up paying taxes.

The Finance Minister explained at length the steps taken by the Department to streamline the tax system, including making e-filing mandatory, using information on AIRs and implementation of tax preparers scheme.

UNI