The survey estimates that tax exemptions will cost the government a little over Rs1 lakh crore in lost revenue. It does not give any hint about the Finance Ministry''s thinking on corporate income tax rates. The economic survey expects to tax collections to exceed target. No surprises there.

Against a projected growth of 19.5 percent, collections till December have risen by 33 percent. A little less than three quarters of the target has been achieved within the first three quarters of the year. Service taxes are a promising source, it says. The survey calls for a friendly tax administration that allows little scope for corruption.

While the peak rate of customs duty was brought down to 12.5 percent this year, the rate actually collected for 10 groups was 11 percent, down from 14 percent last year. VAT collections during the first half of this year was up 26 percent. There is no talk of a goods and services tax. But cheering the growth in revenues, the Survey faults the government for lacking in expenditure control.

o Exemptions to cost Rs 100,147 cr in 2006-07 o Collections to over-shoot target o No hint of stance on income tax rates o Service tax is a promising source o Customs duty collection rate 11 per cent down from 14 per cent o Further tax reform needed o VAT collections healthy o No talk of GST o Expenditure control not happening