Demonetisation: Arun Jaitley says tax mop-up rising, sees no slowdown

Dismissing concerns of slowdown due to demonetisation, Finance Minister Arun Jaitley said on Monday that both direct and indirect tax collections have shown robust increase during the April-December period, indicating uptick in economic activity including manufacturing.

PTI January 09, 2017 13:56:27 IST
Demonetisation: Arun Jaitley says tax mop-up rising, sees no slowdown

New Delhi: Dismissing concerns of slowdown due to demonetisation, Finance Minister Arun Jaitley said on Monday that both direct and indirect tax collections have shown robust increase during the April-December period, indicating uptick in economic activity including manufacturing.

He said direct tax collection was up 12.01 per cent at Rs 5.53 lakh crore in April-December 2016 as compared to revenue in the year-ago period, while indirect tax receipts soared 25 per cent to Rs 6.30 lakh crore.

Demonetisation Arun Jaitley says tax mopup rising sees no slowdown

Arun Jaitley. AFP

Giving the break-up, he said excise collection was up 43 per cent at Rs 2.79 lakh crore, while service tax rose 23.9 per cent to Rs 1.83 lakh crore in the first nine months of the current fiscal. Customs duty receipts were up 4.1 per cent at Rs 1.67 lakh crore.

Indirect tax collection in December was up 14.2 per cent year-on-year, he said.

During the month, which witnessed the demonetisation process, the excise collection was up 31.6 per cent, Jaitley said, adding that this category is directly linked to manufacturing.

Service tax receipts in December were also up 12.4 per cent. Customs revenue dipped 6.3 per cent as gold imports came down.

"Tax collection data is real and not an estimation," Jaitley said, while dismissing apprehensions of slowdown in following currency squeeze post demonetisation.

When compared with tax collections in November, indirect tax receipts in December 2016 were up 12.8 per cent, he said.

"Since there has been a considerable debate in the public space as to the impact of currency squeeze in the months of November and December, the data of these two months becomes relevant," Jaitley said.

VAT collections in most states too have shown an increase and they also received taxes in the old currency in November. "In my opinion, all well administered states have seen rise in VAT collection even in November," he said.

Updated Date:

also read

Gujarat to get world’s first CNG terminal: Why this Rs 4000-crore project matters
Explainers

Gujarat to get world’s first CNG terminal: Why this Rs 4000-crore project matters

Prime Minister Narendra Modi, on a two-day trip to Gujarat, laid the foundation stone for the terminal expected to be operational in 2026. The Bhavnagar project will be developed through a public-private partnership with Padmanabhan Mafatlal Group and the UK's Foresight Group taking the lead

PM Narendra Modi greets people on Navratri
India

PM Narendra Modi greets people on Navratri

Prime Minister Narendra Modi on Monday greeted people on the beginning of Navratri and wished them happiness, fortune and good health.

Indian Army starts total nationalist recast of practices, regulations to erase colonial legacy
India

Indian Army starts total nationalist recast of practices, regulations to erase colonial legacy

According to the Indian Army, this is part of an effort to align itself to the national sentiment in accordance with the five vows or 'Panch Pran' that Prime Minister Narendra Modi has asked people to follow