Indirect tax collection reaches 31.2% of Budget estimate
September, 30th 2014
Revenue authorities have managed to collect over 31 per cent of target for indirect taxes in first five months (April-August) of the current fiscal that is, 2014-15. Indirect taxes include Customs duty, excise duty and service tax.
However, collection of Customs duty and excise duty are still sluggish during the five-month period, though both of them registered good growth in August itself. Customs duty is levied on the export and import of the goods while excise duty is levied on the manufactured goods at factory gate. Service tax is levied on various kind of services one uses.
According to data released by the Finance Ministry, total indirect tax collection increased to Rs. 1.94 lakh crore from Rs. 1.85 lakh crore showing an increase of 4.6 per cent. The Finance Ministry has set a target of collecting over Rs. 6.23 lakh crore for the full fiscal which requires collection at more than 25 per cent.
Last month, while addressing the annual conference of Chief Commissioners and Directors General of Customs, Central Excise and Service Tax, the Finance Minister Arun Jaitley had said that the revenue targets in the case of indirect taxes for the current financial year are challenging but very much achievable. He said that last few years have been somewhat difficult as far as the Indian economy is concerned.
However, with focus on improving areas of manufacturing and infrastructure, things are likely to improve. At the same time, figures related with manufacturing sector during June and July are quite encouraging. Jaitley said that if this trend continues for a few more months only then it will constitute a pattern.