Indirect tax collections up 5.8% in H1

Written by fe Bureau | New Delhi | Updated: Oct 15 2014, 08:08am hrs
Indirect tax collections in the first half of the current fiscal grew at a modest 5.8% to R2.41 lakh crore mainly on account of dismal growth in excise duty receipts.

Collections from excise, customs and service tax in the April-September period accounted for 39% of the full year target of R6.24 lakh crore, indicating that revenue authorities have to make up for the shortfall in the second half.

Indirect taxes were projected at the beginning of this fiscal to grow by 20% this year but the lacklustre performance in manufacturing has adversely impacted excise duty collections.

The department received R75,021 crore by way of excise in the first half, a tad lower than the R75,470 it had collected in the same time a year ago. Manufacturing activities had shown an annual 3.5% growth in the first quarter of this fiscal on a lower base of 1.5% contraction recorded in the same quarter last fiscal.

In September, excise collections contracted 0.4% to R14,288 crore from the same month a year ago.

Customs receipt showed a 5.5% growth in the April-September period to R89,324 crore. Import duty receipts, however, showed a robust 32.8% growth in September at R18,116 crore from the same month a year ago.

Service tax collections grew at 13% in the April-September period to R77,466 crore. Service tax receipts growth had moderated in September to 5.8% R15,608 crore.

Finance minister Arun Jaitley had recently said the revenue target for indirect taxes for the fiscal were challenging but were very much achievable.