Indirect tax collection soared by a whopping 43 per cent to Rs 56,930 crore in the first quarter of the current financial year on the back of an upswing in industrial activity.
The revenue from Customs, excise and service tax, which made up the indirect taxes, during the April-June quarter of the current financial year, stood at Rs 56,930.15 crore, up from Rs 39,693.78 crore in the period a year ago, a finance ministry official said.
Of the total indirect tax collections, realisation from Customs zoomed by 60 per cent to Rs 28,135 crore and excise by 55 per cent to Rs 19,536 crore. Service tax collection, however, declined by 3 per cent to Rs 9,258 crore during the reporting quarter.
The government has budgeted an overall tax mop-up of Rs 7.46 lakh crore during this financial year. While Rs 3.16 lakh crore of this are expected to be realised from indirect taxes front, Rs 4.3 lakh crore are expected to be collected from direct taxes, which mainly consist of corporate tax and personal income tax.
Sources attributed the higher indirect tax collections to partial withdrawal of the stimulus measures in the Budget, besides economic recovery witnessed in the current financial year. Rising prices of crude oil in the international market also contributed to higher realisation from Customs.
Finance Minister Pranab Mukherjee had raised excise duty from 8 per cent to 10 per cent and increased duties on crude oil and petroleum products in the Budget. The minister, however, retained the service tax rate at 10 per cent.
| SWELLING KITTY > Indirect tax collections in the first quarter stood at Rs 56,930 crore > The revenue from Customs, excise and service tax stood at Rs 56,930.15 crore, up from Rs 39,693.78 crore in the first quarter a year ago > Realisation from Customs zoomed by 60 per cent to Rs 28,135 crore and excise by 55% to Rs 19,536 crore > Service tax collection declined by 3% to Rs 9,258 crore > The government has budgeted an overall tax mop-up of Rs 7.46 lakh crore during this financial year > Direct tax collections, which include corporate tax and personal income tax, have risen by 15% to Rs 68,675 crore |
The overall economic growth in the current financial year is estimated to be at 8.5 per cent, up from 7.4 per cent in the previous financial year. According to the latest figures, industrial production in April, the first month of the financial year, jumped to 17.6 per cent.
Reflecting the overall economic buoyancy, direct tax collections, which include corporate tax and personal income tax, rose by 15 per cent to Rs 68,675 crore. Corporate tax collection soared by 21.65 per cent to Rs 43,439 crore during the first quarter.