Economy

April-Nov indirect tax mop-up falls short of target

Our Bureau New Delhi | Updated on March 13, 2018


Indirect tax revenues registered a growth of 5.6 per cent for the first seven months of the current fiscal. This is much lower than the budgeted target of 25.8 per cent.

Indirect tax comprises Custom Duty, Excise Duty and Service Tax. In a review meeting on November 8, Finance Minister Arun Jaitley, had asked the authorities to formulate a strategy to meet the Budget target.

According to the Finance Ministry, total indirect tax collection went up to ₹2.85 lakh crore against ₹2.70 lakh crore in same period last fiscal. Although, tax authorities have managed to get over 45 per cent of the Budget target of ₹6.23 lakh crore, it will be an uphill task to get ₹3.38 lakh crore to meet the Budget target in remaining five months.

Data revealed that excise collection has been sluggish and is still in the negative zone. This is a direct result of lower industrial output which grew by meagre 0.4 per cent in August. September IIP growth of 2.5 per cent has given a hope of recovery.

Custom duty and service tax collections have been better. The Government is expecting better manufacturing and export performance in the second half which could help in mobilising higher revenue.

In terms of direct taxes (personal income tax, corporate tax, securities transaction tax and wealth tax), the situation appears to be slightly better. Gross direct tax collection during April 1 to October 20 grew at 13.6 per cent to ₹3.78 lakh crore.

Published on November 12, 2014

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