There has been a loss of around Rs 53,000 crore in the moderation of course in direct tax, according to Mr Sunil Mitra, Union Revenue Secretary.

Addressing a seminar on New Direct Tax Code organised by CII, Eastern Region Mr Mitra stressed the need for better controlled financial provisions to harness the loss of tax –related earnings from foreign companies.

He also referred to the issue of major tax loss from profit-linked deductions in case of SEZs. The budget allocation was a better and upfront option to benefit a sector than providing tax holiday, he observed.

New code

Pointing out that the target for the current fiscal’s direct and indirect tax collection had been set at Rs 7.45 lakh crore, up from last fiscal’s collection of Rs 6.7 lakh crore, Mr Mitra said, “The migration to the new Direct Tax Code will ensure a paradigm shift in the whole process of levying and collection of taxes in the country.”

Referring to rich dividends yielding from the reforms in the country’s tax system, the Revenue Secretary indicated that the share of direct tax in the GDP in 2009-10 was up to 6.4 per cent from 2.97 per cent a decade ago.