The central government is projecting a 16-17 per cent increase in tax collections for the financial year 2007-08.
Sources said the government was also eyeing a near 71 per cent increase at Rs 12,830 crore (Rs 128.3 billion) on account of the education cess on petrol and diesel in 2007-08.
This increased collection is likely on account of a proposed hike in the cess rate. In fact, the increased collection from this head is expected to be Rs 7,500 crore (Rs 75 billion) for 2006-07, which is 50 per cent higher than Rs 5,000 crore (Rs 50 billion) collected in 2005-06.
The finance ministry is learnt to have conveyed its views on gross tax revenue estimates for 2007-08 to the Planning Commission.
With the economy growing at 9.2 per cent, the tax collection (net to centre) during April-December 2006 was higher by 37.6 per cent. The government has collected Rs 2, 32,171 crore (Rs 2321.71 billion) in April-December 2006-07, over the previous year.
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