New Delhi: Reflecting a marked recovery in industrial activity, indirect tax collections zoomed by 43% to Rs56,930 crore in the first quarter of this fiscal.
The revenue from customs, excise and service tax, which make up the indirect taxes, during the April-June quarter of 2010-11 fiscal stood at Rs56,930.15 crore, up from Rs39,693.78 crore in the year-ago period, a finance ministry official told PTI.
Out of the total indirect tax collections, realisation from customs zoomed by 60% to Rs28,135 crore and excise by 55% to Rs19,536 crore. Service tax collection, however, declined by 3% to Rs9,258 crore during the reporting quarter.
The government has budgeted an overall tax mop-up of Rs7.46 lakh crore during this fiscal. While Rs3.16 lakh crore of this are expected to be realised from the indirect taxes front, Rs4.3 lakh are expected to be collected from direct taxes, which mainly consist of corporate tax and personal income tax.
Sources attributed the higher indirect tax collection to partial withdrawal of the stimulus measures in the budget, besides economic recovery witnessed in the current fiscal. Rising prices of crude oil in the international market also contributed to higher realisation from customs.
Finance minister Pranab Mukherjee in the budget raised excise duty from 8 to 10 per cent and also increased duties on crude oil and petroleum products. The minister, however, did not raise the service tax rate retaining it at 10%.
The overall economic growth in the current fiscal is estimated at 8.5%, up from 7.4% in the previous fiscal. As per the latest figures, industrial production in April, the first month of the fiscal, jumped to 17.6%.
Reflecting the overall economic buoyancy, direct tax collection, which include corporate tax and personal income tax, rose by 15% to Rs68,675 crore. Corporate tax collection soared by 21.65% to Rs43,439 crore during the first quarter.