The finance ministry said the direct tax collection was likely to exceed the Budget target of Rs 95,714 crore (Rs 957.14 billion).

In the first six months of the current fiscal, the direct tax mop-up was 16 per cent more than the realisation in April-September 2002 and was marginally higher than the targeted increase of 15.9 per cent over the last fiscal's collections.

At a review meeting on tax collection convened by Finance Minister Jaswant Singh, it was felt that with improved administrative measures to encourage tax compliance, the direct tax collection target could be surpassed despite the huge refunds.

Singh expressed concern that in certain regions like Nagpur, Ahmedabad, Patna, Jalandhar and Patiala collection was lower than the corresponding figures of the last fiscal. The revenue department has advised the officials concerned to take corrective measures to improve tax compliance and collection.

Indirect taxes in the first half of 2003-04, too, were 8.3 per cent higher than the first half of 2002-03. In a statement issued on Monday, the finance ministry said monthly collections were picking up and against an increase of 5.77 per cent in August, the collection in September 2003 grew 14.3 per cent from September 2002.

Singh emphasised in the meeting that greater coordination and improved administrative measures were required to increase the indirect tax collection in the second half to meet Budget targets.

He also called for special efforts to boost collection, particularly in Bangalore, Mumbai, Hyderabad, Chennai and Delhi, where they have been lower than expected.