Direct tax growth declined to 22.2 per cent, following the global financial crisis. Government collected Rs 1,77,251 crore as direct taxes between April to November this fiscal. The collection was Rs 1,45,053 crore till November last year. Low economic activities impacted the state revenue significantly as companies are facing low demand amid tight monetary policy and global slow demand. Tax growth witnessed 45% increase earlier this year while 29.5% growth a month ago.

Corporate income tax grew by 26.82% to Rs 1,09,735 crore till November while personal income tax collections increased by just 15.28% to Rs 67,215 crore as compared to Rs 58,304 crore last year. Revenue from securities transaction tax (STT) decreased by 15.42% to Rs 4,165 crore from Rs 4,924 core a year ago.

Banking cash transaction tax (BCTT) recorded 17.33% increase till November 2008. Fringe benefit tax collection has shown a rise of 34.47% as compared to last year.

The Central Board of Direct Taxes is optimistic to achieve the budget estimates of Rs.3,65,000 crore taxes for the current financial year. However, tax collection may decline as profit margins of companies are declining due to the pressure of global slowdown.