Total tax revenue to touch over 5 cr by 2010

New Delhi, June 17: The total tax revenue from corporate, income-tax, custom and excise duties and service taxes is poised to touch Rs 5,80,816 crore by 2009-10 and Rs 10,69,486 crore by 2014-15 from Rs 4,67,848 crore in last fiscal, an industry chamber said here today.

It said 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.

In a survey on 'Eco Pulse on Tax Revenue : The Future Growth Path', industry body Assocham President Venugopal N Dhoot said that service tax which was imposed since 1994 with three services in its net, registered a growth of 9,200 per cent 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 38,169 crore which will go up to Rs 1,36,392 crore and register a growth of 257 per cent in 2009-10. In 2014-15, the service tax revenue is likely to touch Rs 7,35,075 crore with a 1,825 per cent growth, added Mr Dhoot.

Assocham pointed out that growth in corporate, income-tax, excise and custom duties volumes have respectively risen from a whooping level of 1,549 per cent, 946 per cent, 280 per cent and 244 per cent 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.

The study indicated that the Central Government collected corporate tax to the tune of Rs 8,899 crore in 1992-93, the same rose to Rs 14,649 crore in 2006-07 an increase of a little over 1,549 per cent.

In fiscal 2006-07, share of corporate tax in total tax revenue went up to 31.3 per cent which was 11.9 per cent in 1992-93. The corporate tax collection would further go up to Rs 2,04,784 crore in 2009-10 before settling to Rs 5,21,630 crore by 2014-15, the study added.

As regards to income-tax, in 1992-93 the revenue collected by government was Rs 7,888 crore which went up to Rs 82,510 crore in 2006-07, showing a growth volume of 946 per cent.

''This has happened largely due to better tax compliance and increased number of taxpayers and much lessor harassment from authorities concerned,'' stated the Assocham paper.

The share of income tax in total tax revenue while was 10.6 per cent in 1992-93, it went up to 17.6 per cent in fiscal 2006-07.

Projections made by Assocham for Income Tax collections for 2009-10 are made for Rs 1,19,443 crore and Rs 2,59,522 crore for 2014-15.

Excise and custom duty, the volumes for tax collections have risen respectively by 280 per cent and 244 per cent despite rationalisation and reduction in their duty structure which motivated large number of taxpayers to voluntarily show transparency in their accounts books.

The revenue from customs to the Government in 1992-93 was Rs 23,776 crore and in case of excise, it was Rs 30,382 crore, the collections from these two sources respectively went up to Rs 81,800 crore and Rs 1,17,266 crore showing an increase of 280 per cent and 244 per cent, Assocham revealed.

Excise and Customs collections respectively projected for 2009-10 comprise Rs 1,52,874 crore and Rs 87,899 crore against Rs 7,35,075 crore and Rs 1,26,810 crore for year 2014-15.

The excise duty share in total tax revenue while was 41.3 per cent in 1992-93, declined to 25.1 per cent in 2006-07 and as regards to customs duty share in total tax revenue which was 31.9 per cent in 1992-93 fell down to 17.5 per cent 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, said the study.

UNI