In what could be seen as a revival of economic activities in the country, tax collections particularly - the mop-up from Customs duty on machinery and service tax have seen a sharp spike this fiscal.
The Centre’s tax revenue had touched ₹ 10.66 lakh crore by January 31 or 73.5 per cent of the full-year target, Revenue Secretary Hasmukh Adhia said on Wednesday.
“This is an indication of high level of economic activity that seems to be taking place. It supports the latest figures on growth in gross domestic product,” he said.
Data released by the Central Statistics Office on Monday had indicated that the GDP could grow by 7.6 per cent this fiscal, a notch higher than the Finance Ministry’s estimate of 7-7.5 per cent growth this fiscal.
The Centre’s total tax collection target for 2015-16 is estimated at ₹ 14.49 lakh crore. Direct tax collections between April and January 31 stood at ₹ 5.22 lakh crore, while indirect tax collections amounted to ₹ 5.44 lakh crore.
Adhia said that there will be a small shortfall in direct tax collections but it will be made good by the mop-up from indirect tax collections.
“Already 88 per cent of the Budget estimate for indirect tax receipts has been achieved. We expect an additional ₹ 44,000 crore from it,” he said.