Mumbai: The Central Board of Direct Taxes (CDBT) has raised its annual target for direct tax collections by 12 per cent for 2006-07 and aims to mop up around Rs230,000 crore, against the 2006-07 budget estimate of Rs205,000 crore.

The highest increase in target has been set for Mumbai, the biggest contributor to the direct tax kitty.

Mumbai's collection target has been increased by Rs 10,000 crore to Rs 79,000 crore. This enhancement is based on the assumption that collections will be up by 40 per cent over last fiscal.
The expectation is based on the fact that the banking and manufacturing sector has done well last year.

This is in contrast to the previous year, when the poor performance of banks, insurance oil and telecom companies had contributed to a shortfall in direct tax collections.