The Hindu Business Line : Indirect tax collections up 16.2 pc in April-Jan

BUOYANT tax collections and a better-than-expected economic growth forecast by the Central Statistical Organisation (CSO) may help the Finance Minister, Mr P. Chidambaram, in meeting the revenue and fiscal deficit targets set out in the Union Budget of 2005-06.

The Finance Ministry said on Wednesday that indirect tax collections grew by 16.2 per cent during the April-January period of the current fiscal to Rs 1,53,988 crore from Rs 1,32,501 crore in the corresponding previous period.

The announcement comes a day after the CSO put out a GDP growth estimate of 8.1 per cent for 2005-06.

On the direct taxes front, personal income-tax collections increased by 35 per cent to Rs 44,491 crore.

In the case of corporate income-tax, collections grew by 21 per cent to Rs 65,094 crore.

The Budget estimate for income-tax and corporation tax for 2005-06 stood at Rs 66,239 crore and Rs 1,10,573 crore respectively.

Fringe benefit tax collections stood at Rs 2,744 crore, while securities transaction tax notched up Rs 1,957 crore. Banking cash transaction tax raked in Rs 221 crore.

The Finance Minister had pegged the fiscal deficit estimate for the current year at Rs 1,51,144 crore, or 4.3 per cent of the estimated GDP.

As per the Controller General of Accounts, fiscal deficit up to December 31, 2005 stood at Rs 1,08,334 crore (71.7 per cent of Budget estimate for 2005-06).

On the indirect tax collection front, the 16.2 per cent growth rate recorded during the period is much higher than the Budgeted growth of 12.15 per cent for 2005-06.

For the whole year, gross indirect tax collections had been Budgeted at Rs 1,92,215 crore (revised estimate of Rs 1,71,390 crore for 2004-05).

Customs collections buoyant: Customs duty collections continue to be buoyant and have already come close to the Budget estimate of Rs 53,182 crore for the year. Tax collections under this head have so far raked in Rs 52,754 crore (Rs 46,029 crore in 2004-05).

Excise dutycollections grew by 10.83 per cent to Rs 85,030 crore (Rs 76,720 crore).

Service tax collections stood at Rs 16,205 crore (Rs 9,751 crore).

While the Budget estimate for 2005-06 excise duty collections stood at Rs 1,21,533 crore, the target in the case of service tax was Rs 17,500 crore.

For January 2006, indirect tax collections were up 19.9 per cent at Rs 17,434 crore (Rs 14,535 crore).

While Customs collection during the month stood at Rs 5,038 crore (Rs 4,817 crore), excise collections clocked Rs 10,010 crore (Rs 8,299 crore). Service tax collections brought in Rs 2,386 crore (Rs 1,420 crore).