Indirect tax collections up 16.1% in May

Indirect tax collections have increased by 16.1 per cent to Rs.37,166 crore in May on the back of rise in excise duty and service tax rates.

The overall growth in indirect tax revenue collection during May is about 16.1 per cent which is 5.7 per cent higher than last month's position, an official release said.

The indirect tax, excise duty, customs and service tax, collections had totalled Rs.32,019 crore in May, 2011.

During the month under review, service tax collections grew by hefty 45.4 per cent to Rs.8,607 crore from Rs.5,918 crore in the same month in the previous fiscal. Collections from excise at the same time were up 16.2 per cent at Rs.14,693 crore against Rs.12,640 crore in May, 2011.

The growth in customs collections is 3 per cent in May, though it was negative in April. The government has increased the excise duty and service tax by 2 percentage points each to 12 per cent in the budget.

Revenue growth

The percentage of growth in revenue during May, 2012, after adjustment for deep cuts in duty rate on petroleum and petroleum products made effective from June 25, 2011, reflected the overall growth of 27.6 per cent over the revenue collections during May, 2011, the release said. During the first two months of the current fiscal, the Central Government garnered Rs.70,211 crore from indirect taxes against Rs.61,955 crore in the same period in the previous financial year.

The progressive growth of indirect taxes during April-May this financial year was 13.3 per cent, it said.