Net tax revenues fall short of target by Rs 206.83 billion

Net tax revenues for 2001-02 are estimated to be Rs 1,42,348 crore, compared to the budget estimate of Rs 1,63,031 crore, thereby reflecting a shortfall of Rs 20,683 crore. As Union Finance minister Sinha explained, the major shortfall is due to lower collection of customs and union excise duties mainly due to the industrial slowdown.

Net tax accruals have been falling short of the estimated figures year after year. Even in fiscal 2000-01, as against a target of Rs 1,444.03 billion for net tax revenue, the actual accrual was only Rs 1,353.23 billion - 93.71% of the estimate.

Ironically, only 2% of our total population, which means 23 million people, pay taxes. And hence, there was an urgent need to repair the loopholes in tax collection compliance mechanism and widen the tax base to increase revenues.

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