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.