Chennai: From a tax revenue of Rs.800 crore in 1996-97 the budgeted revenue from service tax for 2008-09 is Rs.64460 crore.

For 2007-08 the revised estimate of service tax collection is Rs.50603 crore.

In his budget speech the Union finance minister, P Chidambaram has proposed to expand the service tax net to include asset management service provided under the unit linked insurance policy (ULIP) on par with the asset management service provided under mutual funds; services provided by stock/commodity exchanges and clearing houses; right to use goods where Value Added Tax is not payable and customised software.

He also said money changers, persons running games of chance, and tour operators using contract carriage vehicles would come under the service tax net.

The one news for cheer is the increase in the threshold limit of exemption for small service providers from Rs.8 lakh per year to Rs.10 lakh million per year.