Indirect tax mop-up zooms 43pc to Rs 56,930 cr in Q1
July, 09th 2010
Indirect tax collection soared by a whopping 43 percent to Rs 56,930 crore in the first quarter of the current fiscal on the back of an upswing in industrial activity.
The revenue from customs, excise and service tax, which make up the indirect taxes, during the April-June quarter of the current fiscal stood at Rs 56,930.15 crore, up from Rs 39,693.78 crore in the year-ago period, a finance ministry official told PTI.
Out of the total indirect tax collections, realisation from customs zoomed by 60 percent to Rs 28,135 crore and excise by 55 percent to Rs 19,536 crore. Service tax collection, however, declined by 3 percent to Rs 9,258 crore during the reporting quarter.
The government has budgeted an overall tax mop-up of Rs 7.46 lakh crore during this fiscal. While Rs 3.16 lakh crore of this are expected to be realised from the indirect taxes front, Rs 4.3 lakh are expected to be collected from direct taxes, which mainly consist of corporate tax and personal income taxe.
Sources attributed the higher indirect tax collection to partial withdrawal of the stimulus measures in the budget, besides economic recovery witnessed in the current fiscal. Rising prices of crude oil in the international market also contributed to higher realisation from customs.
Finance minister Pranab Mukherjee in the budget raised excise duty from 8 to 10 percent and also increased duties on crude oil and petroleum products. The minister, however, did not raise the service tax rate retaining it at 10 percent.
The overall economic growth in the current fiscal is estimated at 8.5 percent, up from 7.4 percent in the previous fiscal. As per the latest figures, industrial production in April, the first month of the fiscal, jumped to 17.6 percent.
Reflecting the overall economic buoyancy, direct tax collection, which include corporate tax and personal income tax, rose by 15 percent to Rs 68,675 crore. Corporate tax collection soared by 21.65 percent to Rs 43,439 crore during the first quarter.