Indirect tax collections went up by 42.3 per cent to Rs 2,07,756 crore between April and November, against Rs 1,45,958 crore in the corresponding months of 2009-10, primarily due to an increase in Customs duty mop-up.
The collections in the first eight months are about 66 per cent of the Budget estimate of Rs 3,15,000 crore for 2010-11. Last year’s collections during the same period constituted 54.5 per cent of the overall target.
The biggest contributor to the revenue collections was the Customs duty mop-up, which increased 67 per cent to Rs 86,844 crore in the eight-month period this year, against Rs 52,011 crore in the year-ago period. This constituted 75.5 per cent of the Rs 1,15,000-crore target for the whole year, the finance ministry said in a statement today.
| UPSWING (in Rs cr) | |||
| Indirect tax collections | Apr-Nov 2009-10 | Apr-Nov 2010-11 | Growth (in %) |
| Customs | 52,011 | 86,844 | 67.0 |
| Excise | 61,020 | 81,984 | 34.4 |
| Service | 32,927 | 38,927 | 18.2 |
| Total | 1,45,958 | 2,07,756 | 42.3 |
Collections from excise duty rose to Rs 81,984 crore, which is 34.4 per cent more than the Rs 61,020 crore mopped up during the same period last year. This constituted 62.8 per cent of the target of Rs 1,30,471 crore fixed for the current financial year. Revenue collections from service tax stood at Rs 38,927 crore — an increase of 18.2 per cent from Rs 32,927 crore in 2009-10. The collections were 57.2 per cent of the overall target of Rs 68,000 crore for 2010-11.
The increase in revenue collections this year is an indicator of the economic activity picking up. The economy registered a gross domestic product (GDP) growth rate of 8.9 per cent in the first half of the current financial year. Industrial output also increased to 10.8 per cent per cent during the month of October.
The total tax mop-up fell short of the target of Rs 6,41,000 crore in 2009-10 by about Rs 20,000 crore. The government is expecting the tax collection target of 7,46,000 crore to exceed this year. The finance ministry is expecting to overshoot its indirect tax collection target by Rs 15,000 crore to touch Rs 3,30,000 crore.
The growth may be led by a robust increase in excise and customs collections, which are likely to exceed the Budget target of Rs 1,32,000 crore and Rs 1,15,000 crore respectively. Service tax collections, on the other hand, may just meet the target of Rs 68,000 crore.
Direct tax collections in the April-November this year increased by 17.85 per cent to touch Rs 2,16,628 crore, compared with Rs 1,83,822 crore collected in the same period last year.
