1. Indirect tax collections rise 5.6% in Apr-Oct

Indirect tax collections rise 5.6% in Apr-Oct

The government’s tax revenue from excise, customs and service tax grew 5.6% in...

By: | New Delhi | Published: November 13, 2014 1:30 AM

The government’s tax revenue from excise, customs and service tax grew 5.6% in the the April-October period to R2.85 lakh crore, which accounted for only 46% of the full-year target of R6.2 lakh crore.

The dismal growth rate is mainly on account of the 1.2% contraction in excise duty receipts in the first seven months of the fiscal at R88,330 crore. The finance ministry had projected a 20% growth rate for indirect taxes this year.

The tax department collected R90,673 crore by way of service tax in April-October, registering a 10.9% growth from a year earlier. Customs duty receipts grew at 7.5% to R1 lakh crore — the only class of tax that has achieved more than half of the full-year collection target.

The shortfall in collections indicate that meeting the full-year indirect tax collection target would be a challenge but the nascent rebound in excise collections in the last couple of months point to better tax receipts in the coming months.

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