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Indirect tax collections recorded a 13.5 per cent growth in June this year to stand at Rs 44,356 crore, compared with Rs 39,085 crore in the corresponding month last year. The notable growth is a sign of economic recovery.
For the first time in the current financial year, Customs duty collections posted growth. June collections were Rs 14,308 crore, a six per cent growth from Rs 13,494 crore in the year-ago period. In April and May, the mop-up from Customs had dropped by 10.5 per cent and 9.7 per cent, respectively.
According to data released by the finance ministry on Thursday, revenue from central excise increased by 8.1 per cent to Rs 14,666 crore, against Rs 13,566 crore in June 2013. Service tax collections showed a robust growth of 27.9 per cent to stand at Rs 15,382 crore, compared to Rs 12,025 crore in June last year.
Industrial output in May had grown by 4.7 per cent, the highest monthly rise since October 2012. It raised hope of a recovery. Cumulative growth during April-May this year, the first two months of the financial, was four per cent, against a fall in output by 0.5 per cent in the first two months of FY14. Economists, however, had warned it had come on the back of a low base.
The growth in October 2012 was 8.4 per cent, while industrial production had contracted 2.5 per cent in May 2013. The fact that a 4.7 per cent growth is the next highest since the Index of Industrial Production clocked 8.4 per cent growth itself shows the tepid performance in between.
The overall growth in indirect tax revenue during the first quarter of current financial year increased from Rs 1,08,639 crore to Rs 1,13,570 crore, registering a growth of 4.5 per cent over April-June 2013.
Service tax collections increased from Rs 32,617 crore to Rs 38,862 crore during April-June 2014, an increase of 19.1 per cent. However, due to a poor show in the first two months of the year, revenue from Customs duty during the three-month period was Rs 39,549 crore, compared with Rs 40,796 crore in the corresponding period of last year — a decline of 3.1 per cent.
As huge refunds were issued in April-May, central excise collections also dropped by 0.2 per cent to Rs 35,159 crore in the first quarter of 2014-15, against Rs 35,226 crore during April-June 2013.
This year’s indirect tax collection target is Rs 6,23,244 crore — 20 per cent higher than last year’s revised estimate.
About 18.2 per cent of the Budget estimate was achieved in the first three months of the year. The revenue department has said the target is challenging.
