DIRECT TAX COLLECTION INCREASES TO MORE THAN HALF OF TOTAL TAX COLLECTION

 

Finance Minister Shri Pranab Mukherjee has asked Indian Revenue Service officials to consider tax payers as important stakeholders in nation building and to administer taxes with a human approach. He was addressing the 63rd batch of IRS trainees last evening.

Shri Mukherjee pointed out that the shift in policy whereby tax payers are not seen as adversaries has resulted in a significant growth in tax collection during the past decade. He asked the trainee officers to imbibe this approach in their daily working.

The Finance Minister said that direct taxes collection has increased by ten times during the past decade. He also pointed out that the share of direct taxes is now more than 55 %.

The Finance Minster reminded the officials that it was due to increased tax buoyancy and collection efforts of Revenue departments that the government was able to waive off the loans to farmers amounting to Rs 71,000 crores.

 

BS/KP/GN-106/10 

Taxpayer stakeholder approach: direct taxes now form a majority share, strengthening revenue mobilisation and fiscal capacity. A policy shift toward treating taxpayers as stakeholders and administering taxation with a human approach has been credited with substantially increasing direct tax receipts, which reportedly rose tenfold and now exceed 55% of total tax revenue, reflecting strengthened tax buoyancy and collection efforts that enabled the government to finance targeted fiscal measures such as agricultural loan waivers.