Direct tax collection will surpass revised estimates: Chidambaram

Mumbai, Mar 28 (UNI) Finance Minister P Chidambaram has expressed confidence that the Direct Tax collection during 2007-08 will far surpass the revised estimates of Rs 304,445 crore.

Speaking at the inaugural function of Large Tax Payer Unit (LTU) of Department of Revenue here today, Mr Chidambaram said, tax revenues have shot up 40 per cent during the current fiscal owing to increased tax compliance.

The rise in Mumbai is over 60 per cent, accounting for almost a third of all direct tax collections, he said. The metropolis, he said, has the potential for at least 150 large tax payers to join the LTU. So far 18 have signed up for the scheme.

''The target for the financial year 2008-09 has been fixed at Rs 3,65,000 crore which implies a collection of Rs 1,000 crore per day,'' Mr Chidambaram said.

The tax administration in the country is changing and the establishment of LTU demonstrates an attitudinal shift towards providing better service, the Finance Minister said.

He also called upon the corporate sector to avail of the single window service which will result in substantial transaction cost savings.

UNI PP MAZ MP DS1412