'Govt to achieve budget target for direct taxes'

New Delhi, July 17: Finance Minister P Chidambaram today gave a categorical assurance that the government would achieve the Budget Estimate target of Rs 2,67,490 crore for direct taxes for fiscal 2007-08 and was hopeful that the targets for fiscal and revenue deficits too would be met. The April-June revenue figure for direct taxes was Rs 41,154 crores, Mr Chidambaram told newspersons while briefing on the outcome of the 23rd Annual Conference of Chief Commissioners and Director Generals of Income Tax.

Mr Chidambaram gave the Budget Estimates targetted growth rate of direct taxes as follows: Corporation tax 17.44 per cent and personal income tax 14.5 per cent. The average direct taxes growth estimated for 2007-08 is 16.31 per cent.

The Finance Minister said there has been considerable progress relating to widening of the tax base. From 311 lakh assessees in 2003-04, the figure has grown to 319 lakh assessees in 2006-07.

Mr Chidambaram noted that Budget Estimate target for direct taxes had been exceeded in 2006-07 and exuded confidence that this year too the BE targets would be met, if not exceeded.

Asked to comment on the Prime Ministers Economic Advisory Council Report's observation that it would be a difficult task to achieve the goal of revenue deficit of zero per cent by 2008-09, Mr Chidambaram felt otherwise and said he was hopeful of achieving the target.

Mr Chidambaram said he would be able to comply with the targets set in the Fiscal Responsibility and Budget Management(FRBM) Act.

"The target for this year's fiscal deficit for 2007-08 would be achieved," he said.

Mr Chidambarm said actual refunds as a proportion of net collections have been coming down. In this regard, he said from 24.5 per cent in 2003-04 this figure had come down to 16.28 per cent in 2006-07. The quantum of refund in 2006-07 was of the order of Rs 37,313 crore. The Finance Minister said the government was well on its way to introducing Biometric PAN cards and added that work was in full swing in this regard.

Mr Chidambaram said 11 lakh duplicate PAN cards had been identified so far and there were many more which fall in this category. As soon as this process is completed Biometric PAN cards would be introduced.

"Biometric PAN cards would be introduced soon. It is in the interest of assessees to take this new card as and when these are issued," he said.

Mr Chidambaram said guidelines relating to taxation of ESOPS would be issued soon and maintained that there was no ambiguity in the existing provisions.

The Finance Minister said the government has been able to muster a credible data base taking recourse to data mining. Besides, ample data is also now available through the details provided by assesees in the Annual Information Report (AIR).

Mr Chidambaram said complinance has improved with more people paying taxes than ever before.

He said the meeting also took up issues relating to Human Resources and added that Human Resource Management Institute would be set up soon. He said a decision in this regard was taken in 2000, but would be made effective now.

The Institute would provide mid career training to tax officials.

UNI