Volatility in the stock market has reaped rich dividend for the government coffers.

Collection from the securities transaction tax up to May this year has already crossed Rs 800 crore (Rs 8 billion). The corresponding collection last year was just Rs 248 crore (Rs 2.48 billion).

Collection by way of fringe benefit tax was Rs 105 crore (Rs 1.05 billion) while collections from the banking cash transaction tax was Rs 78 crore (Rs 780 million).

Overall, the mop-up from the three taxes during April-May touched Rs 1,000 crore (Rs 10 billion). The revenue department has set an internal target of Rs 10,000 crore (Rs 100 billion) for the three taxes.

Direct tax collections during the first two months of the fiscal increased by around 85 per cent. Corporate tax collections up to May were Rs 466 crore (Rs 4.66 billion), 150 per cent higher than the negative collection of Rs 923 crore (Rs 9.23 billion) during the same period last year.

The negative collection last year was on account of refunds being higher than the collection, at Rs 7,954 crore (Rs 79.54 billion).

Income tax collection, inclusive of the three taxes, was Rs 7,304 crore (Rs 73.04 billion), an increase of over 42 per cent compared with Rs 5,122 crore (Rs 51.22 billion) during April-May last year.

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