The economic upswing is translating into higher revenues for the government, with indirect tax mop-up in the first two months of this financial year up over 49% to Rs 43,669 crore as compared to the corresponding period last fiscal, when the country was battling a slowdown.
Last April and May, indirect tax collections were only Rs 29,295 crore.
Customs collection during April and May was up almost 66% to Rs 19,379 crore as compared to the corresponding previous period, while excise mop-up was 54% higher at Rs 16,054 crore, official sources told FE. Service tax collections during the period were marginally up by 4.6% to Rs 6,236 crore, sources added.
This years visible improvement in customs, excise and service tax collections can be attributed to both higher taxes and the recovery in the economy.