BackDecline in customs, excise pulls down Oct indirect tax mop up
Decline in customs, excise pulls down Oct indirect tax mop up
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New Delhi: Reflecting signs of slowdown, the indirect tax collections during October declined by 2.5% mainly on account of drop in realisation from customs and central excise during the month.
In case of central excise, collection during October was ₹ 10,527 crore, down 5.3% from ₹ 11,120 crore in the same period last fiscal.
The decline in the total indirect tax collection would have been much sharper but for the 18.4% growth in realisation from service tax.
The service tax collection during the month rose to ₹ 8,394 crore from ₹ 7,089 crore in October 2010.
The total indirect tax collection during October declined by 2.5% to ₹ 30,278 crore from ₹ 31,058 crore in the corresponding month last fiscal.
However, as far as April-October period is concerned, the indirect tax collection showed an increase of 17.8% to ₹ 2.01 lakh crore from ₹ 1.70 lakh crore during the corresponding period in the last financial year.
The increase during the first seven months of the current fiscal was on account of higher collections from customs, central excise and service tax which rose by 16.6%, 10.6% and 33.6% respectively.
During April-October customs collection was ₹ 86,156 crore (up from ₹ 73,895 crore during corresponding period of last fiscal), central excise ₹ 69,511 crore (Rs 62,838 crore) and service tax ₹ 45,391 crore (Rs 33,977 crore).
The decline in indirect tax collection during the later part of the financial year can be attributed to poor performance of the industrial sector and also the decision of the government to reduce duties on petroleum goods to partly offset the impact of price hike on consumers.
The industrial production during April-August moderated to 5.6% from 8.7% during the corresponding period in 2010-11.
The government in June had reduced customs and excise duties on petroleum goods sacrificing revenues to the tune of ₹ 49,000 crore during the fiscal.
For the current fiscal, the government targets an 18% year-on-year increase in indirect tax collection at ₹ 3.98 lakh crore.
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