Indirect tax collection grows by 24% in November1 min read . Updated: 09 Dec 2015, 11:04 PM IST
The finance ministry expects a shortfall in collections in direct taxes which it expects to meet through surplus from indirect tax collections
New Delhi: Indirect tax collections grew at a slower rate of 24.3% in November compared with 36.8% in October due to slower growth in collections of customs and services taxes. However, the government may comfortably exceed its budget target, having garnered 67.8% of its target for 2015-16 by November.
These increases are partly due to additional measures such as excise increases on diesel and petrol, higher clean energy cess, withdrawal of exemptions for motor vehicles, capital goods and consumer durables and an increase in service tax rate.
The finance ministry expects a shortfall in collections in direct taxes which it expects to meet through surplus from indirect tax collections.
Revenue secretary Hasmukh Adhia tweeted that if additional tax measures are not considered, growth in indirect taxes stood at 10.3% during the April-November period. “We hope to meet the budget target of indirect tax, and we may surpass it also. This would help us in meeting the likely shortfall of revenue target in direct tax," Adhia wrote.
In November, customs collections rose only 1.7% to ₹ 17,475 crore; service tax collections rose 16.1% to ₹ 14,789 crore. But, central excise collections remained robust at 58.3% gathering ₹ 23,033 crore, signalling a steady revival in industrial activity.
India’s economy is expected to grow below 7.5% against the government’s initial target of over 8% growth in 2015-16. In the first half of the financial year (April-September), the economy grew at 7.2%.