The economic slowdown is impacting revenue realisation as indirect tax collection showed only moderate growth of 17%to Rs 2.57 lakh crore in the April-October period, as against the annual growth target of 27%.
In the first seven months of the current financial year, indirect tax collection, which include excise, customs and services tax, was R2.57 lakh crore, sources in the finance ministry said.
According to them, while excise has yielded R95,000 crore during this period, collection from customs and services tax worked out to be about R92,000 crore and R70,000 crore, respectively.
The government in the current fiscal had proposed to collect from customs, excise and services tax R5.05 lakh crore, an increase of 27% over realisation in the previous fiscal.
The target for customs collection for 2012-13 was fixed at R1.87 lakh crore, for excise R1.93 lakh crore and for service tax R1.24 lakh crore.
The moderate growth in revenue realisation comes in the backdrop of poor industrial output, which declined by 0.4% in September, and a very modest growth of 0.1% during the first six months of the current fiscal.
The economy too registered a decade-low growth of 5.5% in the first quarter of the fiscal. As regards the current fiscal, the Reserve Bank of India expects the growth rate to decline to 5.8% from last year’s 6.5%.