Economy

Indirect tax collections up 4.6% in April-June

Indirect tax mop up inched up by 4.6 per cent in the April-June quarter of the current fiscal due to decline in custom duty and excise duty collections, reflecting slump in manufacturing activity.

Indirect tax collections comprising excise, customs and service tax stood at about Rs. 1.13 lakh crore in the first quarter of 2014-15 fiscal, as against Rs. 1.08 lakh crore in the corresponding period a year ago, a finance ministry official said.

The growth at 4.6 per cent is far less than 25 per cent increase envisaged in the Budget for the full 2014-15 fiscal.

Excise collection contracted 0.2 per cent during the quarter to over Rs. 35,159 crore.

Customs mop up has declined by 3.1 per cent to over Rs. 39,549 crore during April-June period against Rs. 40,796 crore in the same period a year ago.

Service tax collection, which has become a new focus area for revenue officials, grew by 19.1 per cent to Rs. 38,862 crore during the period, the official said.

With an aim to widen the service tax net, the government had introduced the concept of negative list of taxation. As per it, all services except those in the negative list are taxable.

The indirect tax collection target for 2014-15 fiscal stands at Rs. 6.24 lakh crore.

Indirect tax collection in the month of June grew by 13.5 per cent to Rs. 44,356 crore.

Excise duty mop up in month of June grew by 8.1 per cent to Rs. 14,666 crore, whereas custom duty collection grew by 6 per cent to Rs. 14,308 crore.

Service tax mop up in June grew by 27.9 per cent to Rs. 15,382 crore against Rs. 12,025 crore in the same month last fiscal.

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Printable version | May 17, 2021 7:53:13 PM | https://www.thehindu.com/business/Economy/indirect-tax-collections-up-46-in-apriljune/article6225785.ece

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