JOIN USIndirect tax mop-up grows by 43% in Q1
The revenue collection through Indirect Tax comprising Customs, Excise and Service Tax during the first quarter of 2010-11 fiscal rose to Rs 56,930.15 crore compared to Rs 39,693.78 crore in the same period of the previous fiscal.
Collection of revenue from Customs grew by 60 per cent to Rs 28,135 crore while revenue mop up through Excise expanded by 55 per cent to Rs 19,536 crore during the first quarter of 2010-11.
On the other hand, the revenue collection through Service Tax dropped by 3 per cent to Rs 9,258 crore. Even though the ongoing improvement in industrial production has led to rise in revenue collection through Indirect Taxes, the partial withdrawal of the stimulus measures through enhancement of Excise and Customs Excise duties contributed to swelling of government’s kitty, annalysts said. While presenting the Budget for 2010-11 the Finance Minister Pranab Mukherjee raised Excise duty from 8 to 10 per cent and also increased Customs duties on crude oil and petroleum products.
The higher indirect tax collection can thus be attributed 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.
Budget estimate
As per the Budget estimate, the government proposes to collect revenue to through all taxes to the tune of Rs 7.46 lakh crore during the current fiscal 2010-11. A sum of Rs 3.16 lakh crore is budgeted to be collected through Indirect Tax route while a sum of Rs 4.3 lakh crore is targeted to be collected from Direct Taxes mainly comprising Corporate Tax and personal Income Tax.Reflecting resurgence in overall economic activities, Direct Tax collection expanded by 15 per cent to Rs 68,675 crore in the first quarter of the current fiscal.
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 per cent.
The overall economic growth in the current fiscal is estimated at 8.5 percent, up from 7.4 percent in the previous fiscal. As per the latest figures, industrial production in April, the first month of the fiscal, jumped to 17.6 per cent.