Tax collections up 23% in first five months of FY17

The government has collected Rs 5.25 lakh crore from taxes in the first five months of the current financial year, nearly 23 per cent higher than the Rs 4.27 lakh crore in the corresponding period of 2015-16. The growth was quite higher than 11.73 per cent targeted in the Budget for the entire 2016-17.

However, corporation tax collections fell 1.9 per cent due to high refunds and customs duty receipts rose only 5.7 per cent, with sluggish imports. Growth rates in both the categories were lower than projected in the Budget for the current financial year- by 9.04 per cent and 9.78 per cent, respectively.

The total collection in April-August was 32.2 per cent of the Budget Estimate (BE) of Rs 16.31 lakh crore for all of 2016-17, showed figures issued by the finance ministry on Monday.

Direct tax collections were up 15 per cent at Rs 1.9 lakh crore, against Rs 1.64 lakh crore in the same period a year before; about 22.3 per cent of the BE for 2016-17 had been achieved. The rise in collections was more than what Budget has projected - 12.64 per cent- for 2016-17.

Gross corporation tax collections, inclusive of refunds, rose 11.6 per cent over the first five months of FY16. Net of refunds, it fell 1.9 per cent.

Personal income tax rose 24.1 per cent, inclusive of refunds. Excluding refunds, it grew 31.8 per cent. The growth was projected to be 18.09 per cent in the Budget. It should be noted that the Budget projects figures net of refunds and hence actual growth in personal income tax was quite higher than the estimates.

Direct tax refunds of Rs 77,080 crore were issued in these five months, about 22.2 per cent higher than those in the corresponding period of FY16.

 

Indirect tax revenues rose 27.5 per cent to Rs 3.36 lakh crore in these five months, about 43.2 per cent of the BE here for FY17. The growth was higher than almost 11 per cent growth estimated in the Budget for 2016-17. Central excise duties yielded Rs 1.53 lakh crore, higher by 48.8 per cent from the Rs 1.03 lakh crore earlier. The Budget projections were 12.15 per cent for excise duty growth during the current financial year.

Part of the growth would have come from additional duties imposed on petroleum but the finance ministry did not give a break-up. An estimate can be had, as manufacturing production fell 1.4 per cent in April-July in volume terms, against four per cent growth in the corresponding period of FY16.

However, it should also be noted that Budget also had these additional measures as given while projecting the growth.

Service tax receipts were Rs 92,696 crore in April-August, up 23.2 per cent over the Rs 75,219 crore in the earlier period.The growth estimated in the Budget was 10 per cent for the entire 2016-17.

Subdued merchandise imports led to muted growth of 5.7 per cent in customs duty collection at Rs 90,448 crore, compared to April-July last year. Trade figures for August are yet to be had. Merchandise imports were down 16.3 per cent at $114 billion in April-July, from $136.3 billion in the period last year.