Indian direct tax collections up 38.6pc in Q1

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NEW DELHI, (Internet): Belying fears of economic slowdown impacting government revenue, direct tax collections have gone up by 38.6 per cent in the first quarter this fiscal at Rs 573.73 billion compared to Rs 413.91 billion in the year-ago period.

"The growth in direct taxes has been maintained despite much larger refund pay-outs at Rs 115.78 billion against Rs 73.02 billion during the corresponding period last fiscal," said a finance ministry statement issued here Friday.

Analysts said robust tax collections are expected to help the government maintain fiscal deficit at 2.5 per cent during 2008-09 despite increase in expenditure in the election year.

During the first three months, corporate taxes have grown by 32.65 per cent and stood at Rs 345.66 billion against Rs 260.58 billion in first quarter last fiscal.