1. Tax collection 73.5% of target till Jan, shows economic growth: Hasmukh Adhia

Tax collection 73.5% of target till Jan, shows economic growth: Hasmukh Adhia

Weeks before it presents Budget for the next fiscal, the government today said it will achieve the tax revenue target for the current year with larger-than- budgeted indirect tax collections making up for a possible shortfall in direct taxes.

By: | New Delhi | Updated: February 10, 2016 1:48 PM
tax revenue

The Finance Ministry on Wednesday said that government has mopped up Rs 10.66 lakh crore till January 30 by way of tax collections. This include Rs 5.22 lakh crore from direct taxes and another Rs 5.44 lakh crore via indirect taxes. (Express Photo)

The Finance Ministry on Wednesday said that government has mopped up Rs 10.66 lakh crore till January 30 by way of tax collections. This include Rs 5.22 lakh crore from direct taxes and another Rs 5.44 lakh crore via indirect taxes.

Revenue Secretary Hasmukh Adhia said in a YouTube message that the tax collections are 73.5% of the annual Budget target.

“We are very optimistic of achieving our annual target of tax revenue this year… Now, these things probably indicate there are new investments in the country,” Adhia said in his message.

The growth in direct tax collections has been 10.9% so far, as compared to previous year, while it is recorded a 33% growth for indirect taxes till now.

In direct tax collections, government is witnessing a ‘robust’ growth both in corporate tax and personal income tax. “In corporate tax collections, the growth rate so far is 10.44% and in the personal income tax the growth has been 11.8%” Adhia added.

In other words, 65% of the annual target has been achieved in direct tax collections.

“We see a small shortfall coming up. But, this would be made good by indirect tax collections, wherein, we have seen that 88% of the target has already been achieved till January 30. So, we expect another Rs 40,000 crore to come from indirect taxes, which will make good in the shortfall in direct taxes,” the revenue secretary explained.

Adhia said that after analysing the trend of tax collections in specific items, there has been a growth in customs duty revenue. For instance, customs duty revenue from electrical machinery has seen a rise of 34.4%, while all other machineries have seen a positive growth of 27.8%.

“Now, these things probably indicate there are new investments in the country for which all these machineries have been imported. If we see the trend of revenue growth in services sector, the rate is 27.2%. But if we see the growth in banking and financial services it is 44.6% and in works and contracts it is 39.9% and in goods and transportation services it is 41%. All these are indicators of economic growth in the country. This actually supports the latest figure of GDP growth,” Adhia said.

Tags: Budget 2016
  1. K
    Karan Bandal
    Feb 10, 2016 at 7:47 pm
    According to above calculations, tax collection so far is 10 lac crore (which 73.5% of target collection). Thus target tax collection is 13.60 lac crore, that is 200 billion dollars. On wiki page for "Economy of India", it is stated the revenue for Indian govt is 410 billion dollars. So where does the remaining 210 billion dollars come from?
    Reply
  2. B
    B.R Pillai
    Feb 10, 2016 at 1:43 pm
    Modi majic
    Reply
  3. R
    rajaburagapu
    Feb 11, 2016 at 4:04 am
    in my opinion,budget would be in favour of women and farmers.
    Reply
  4. R
    rajaburagapu
    Feb 11, 2016 at 4:00 am
    modi will make people happy
    Reply
  5. S
    sup
    Feb 11, 2016 at 12:10 pm
    410 billion is 'Union states' revenue. Here they are only talking about central government tax revenue.
    Reply
  6. v
    varghese.al
    Feb 11, 2016 at 6:10 am
    where you put the tax collected from fuel? each litter you collected around 125% of cost price as tax, where you accounted it? let public know the real economic growth!
    Reply
  7. Load More Comments

Go to Top