UPDATE 1-India indirect tax receipts up 11.5 pct in June qtr
July, 14th 2008
India's indirect tax receipts grew 11.5 percent during the April-June period from a year earlier to 543.41 billion rupees, the finance ministry said in a statement on Monday.
An analyst said moderation in factory output and duty cuts in the budget led to sluggish excise receipts growth while customs collections were boosted by higher imports especially that of crude oil CLc1.
Receipts from excise duty, levied at the factory gate, were up 2.8 percent at 258.82 billion rupees in the first three months of the 2008/09 fiscal year, the statement said.
In June, collections from excise duties grew by 5.9 percent to 98.89 billion rupees, it said.
"Industry has not done so well in the last few months. There were duty cuts in the budget on many items. This is showing up in the excise collections," said D.K Joshi, principal economist of rating agency Crisil.
Government data showed last week India's industrial output expanded by 3.8 percent in May, its slowest pace in six years, as monetary tightening by the central bank in the last two years crimped demand in Asia's third largest economy.
Customs duty receipts however rose 20.9 percent to 284.59 billion rupees in the June quarter, reflecting a robust growth in imports.
Earlier this month, government data showed India's imports were up 31.7 percent in the April-May period from a year earlier. "High global oil prices and higher imports of other items contributed to a robust customs collections," said Crisil's Joshi.
"The overall tax collections will be on target this fiscal," Joshi said. (Reporting by Rajkumar Ray; Editing by Prem Udayabhanu)