Indirect tax collection gains momentum; up 36% during April-October
New Delhi - Indirect tax collections have registered an increase of almost 36 per cent in the first seven months of the current fiscal at Rs 3.83 lakh crore on the back of a spurt in economic activity.
With this, the Finance Ministry said, it has met 59.2 percent of indirect tax target for the full fiscal. As per the Budget Estimate 2015-16, the government aims to collect Rs 6.46 crore from indirect taxes -- central excise, Customs and service tax.
"Cumulatively, during April-October 2015, indirect tax collections increased by 35.9 per cent over the collections made during the same period last year while the target growth rate for 2015-16 is 18.8 per cent," the ministry said.
In October 2015, indirect tax revenue collections rose 36.8 percent from a year ago.Collections from central excise jumped to Rs 1,47,685 crore in April-October 2015, from Rs 87,588 crore in the year-ago period, registering an increase of 68.6 per cent.
In the case of service tax, collections went up to Rs 1,12,727 crore, up 26.1 per cent on year.
Customs duty mop-up too remained on an upward trajectory, which is up 16.8 per cent at Rs 1.22 lakh crore in the seven months, from Rs 1.04 lakh crore in the year-ago period.
These collections are partly due to additional measures like the excise increases on diesel and petrol, the increase in clean energy cess, the withdrawal of exemptions for motor vehicles, capital goods and consumer durables and the increase in service tax rates to 14 per cent from 12.36 per cent.
"However, stripped of all these additional measures, indirect tax collections increased by 11.6 per cent during April-October 2015 compared to April-October 2014. These collections continue to suggest a healthy growth in the underlying tax base," the Finance Ministry added.
Rahul Gandhi must ask Congress-ruled states to cut tax on petrol, diesel, says Dharmendra Pradhan on rising fuel prices
The petroleum minister, however, did not suggest a similar action for BJP-ruled states like Madhya Pradesh and Karnataka, where petrol has crossed Rs 100-mark
Fuel prices raised up to 28 paise today; petrol costs Rs 103.36 a litre in Mumbai, Rs 97.50 in Delhi
Petrol price in major cities: In Chennai, the cost is Rs 98.65 per litre while for diesel it is priced at Rs 92.83
Fuel prices: In Kolkata, a litre of petrol costs Rs 96.34 while the same quantity of diesel is priced at Rs 90.12 in the city