India's Direct Tax Revenues Rise By Almost 30% In Six Months

by Lorys Charalambous, Tax-News.com, Cyprus

09 November 2008

India's Ministry of Finance has this week announced that tax collection over the past six months has risen by an impressive 30%.

According to the Ministry, a 29.52% increase in net direct taxes collected for the period between April and October of this year has been recorded.

Increases to the collection of corporate and personal income taxes have also been recorded, with corporate tax collections rising by 33% and personal income tax collections going up by 23%.

Announcing the news on Thursday, the Ministry of Finance attributed the growth in tax collections to amendments to tax legislation which have encouraged greater compliance and made tax returns less of a complicated procedure.

The Ministry is hopeful that this positive trend can be maintained in the future, stating:

"Momentum of growth in direct taxes could be maintained, despite (the) present global financial crises (and) recession and its resultant impact on the Indian economy, mainly on account of improvement in tax deduction at source mechanism and encouraging better tax compliance".

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