Tepid growth in direct tax receipts in first half of FY17

Overall tax collection rose 17.8%, aided by 26% increase in indirect tax collections

Driven by indirect tax receipts, overall tax collections rose 17.8 per cent in the first half of the current financial year against almost 12 per cent targeted in the Budget for the entire 2016-17. Growth in direct tax collections at 8.95 per cent during April-September was less than 12.65 per cent projected in the Budget due to 27 per cent higher refunds (year-on-year) and subdued corporation tax receipts.

The bad news on the direct taxes front came close to less than expected collections from spectrum. Against Rs 64,000 crore projected in the Budget, spectrum auction will fetch just Rs