The finance ministry has raised the corporate tax collection target for 2003-04 by 20-25 per cent following buoyant second quarter results.

According to finance ministry sources, while the Budget estimate of corporate tax collection for 2003-04 is Rs 51,499 crore (Rs 514.99 billion), the mop-up could be in the range of Rs 62,000-65,000 crore (Rs 620-650 billion). Excise and income tax collection would, however, be lower than estimated, they said.

During April-October 2003, net corporate tax collection climbed 34 per cent to Rs 25,908 crore (Rs 259.08 billion) from Rs 19,822 crore (Rs 198.22 billion) during April-October 2002. Net income tax collection, however, grew 5.4 per cent to Rs 12,961 crore (Rs 129.61 billion) in this period.

Direct tax mop-up during April-October this year increased 23 per cent to Rs 57,400 crore (Rs 574 billion).

However, refunds climbed 33 per cent to Rs 18,633 crore (Rs 186.33 billion), lowering the growth in net direct tax collection 18.6 per cent to Rs 38,758 crore (Rs 387.58 billion).

While the excise duty mop-up targeted at Rs 96,791 crore (Rs 967.91 billion) was expected to fall short by about Rs 5,000 crore (Rs 50 billion), the realisation from income tax would be less than Rs 40,000 crore (Rs 400 billion), against the Budget target of Rs 44,070 crore (Rs 440.70 billion), the sources said.

The finance ministry recently held its first review meeting on revenue collection as part of its annual Budget-making exercise.

The department of economic affairs has sought revised targets for the current fiscal from the Central Board of Excise and Customs.

Ashok Lahiri, chief economic adviser in the finance ministry, had on Monday attributed the higher fiscal deficit in the first half partly to the slippage in excise collection.