 "Indirect tax collection growth dips in July")
The rise in June was the highest this financial year (it began on April 1). The slowing in July was due to a sluggish pace in both Customs duty and service tax collection. The former levy’s rise was only 0.2 per cent, from Rs 15,730 crore in July last year to Rs 15,756 crore this year. Central excise collection rose 7.5 per cent to Rs 14,127 crore this July, from Rs 13,143 crore in the corresponding period a year before.
Service tax inflow was 8.4 per cent higher at Rs 12,007 crore, against Rs 11,076 crore in July 2013.
The slower growth raises doubt about economic recovery. Industrial output had increased only 3.4 per cent in June, due to a big contraction in consumer goods, against five per cent in May. Data for July will be issued next month.
During April-July this year, total indirect tax collection rose to Rs 154,350 crore, compared with Rs 148,588 crore in the corresponding period in 2013. At this level, it is 24.8 per cent of the full year’s Budget Estimate.
“An increase of 3.9 per cent has been registered during April-July over the corresponding period in the previous year,” the finance ministry stated.
Service tax collection increased from Rs 43,693 crore in April-July 2013 to Rs 50,850 crore during April-July 2014, a rise of 16.4 per cent. Custom duty collection, on the other hand, fell 2.2 per cent to stand at Rs 55,305 crore for the four-month period this year, against Rs 56,526 crore a year earlier. Similarly, excise duty inflow fell 0.4 per cent to Rs 48,195 crore from Rs 48,369 crore in April-July last year, showing that manufacturing had not yet picked up as hoped.