13.5% indirect tax collections belie fears of slowing economy
August, 15th 2008
Indirect tax collections grew 13.5% in July 2008 despite deceleration in economic growth and fears of a global slowdown. Improved revenue collection on this front was led by strong growth in Customs duty mop-up, which registered a buoyant 18.7% increase.
Excise collections grew 8.9% in July, reviving hopes that industrial production would recover in the months to come. In a disappointing show, industrial production rose by just 5.2% in the first quarter while core sector growth also remains a cause of concern.
Buoyed by healthy growth in import duty collections, total revenue from indirect taxes went up by 13.5% to Rs 20,019 crore in July 2008, up from Rs 17,639 crore in July 2007. Central excise collection during July rose by 8.9%, higher than cumulative growth rate of 4.4% in the first four months, to Rs 10,227 crore. Customs collections grew by 18.71% to Rs 9,792 crore in July 2008.
Service tax collections during June 2008 increased by 21% to Rs 5,064 crore. During the first quarter (April-June), service tax collection surged by 29% to Rs 14,838 crore.
Indirect tax collection during April-July period increased by 12% to Rs 74,359 crore, according to government data. During the four-month period of the current fiscal, Customs collections grew by 20.3%, while excise revenues were up by 4.4% to Rs 38,250 crore and Rs 36,109 crore, respectively.