Govt confident of meeting tax target

Govt confident of meeting tax target

In an indication of revival of economic activities in the country, the government on Wednesday said it will be able to meet the Budgeted Rs 14.49 lakh crore tax revenue target this fiscal.

The Centre’s total tax collection target for 2015-16 is estimated at Rs 14.49 lakh crore, of which, Rs 7.97 lakh crore is expected to come from direct taxes, and Rs 6.47 lakh crore from indirect taxes.

The government has collected Rs 5.22 lakh crore on account of direct taxes in the April-January period while the indirect tax kitty has swelled to Rs 5.44 lakh crore.

According to the Finance Ministry, the trend suggests that the indirect tax revenue mop-up will exceed by Rs 40,000 crore, while direct taxes will fall short of the target.
“Looking to the trend, it appears that as far as Indirect Tax collections are concerned, the government may get more than Rs 40,000 crore extra, over and above, the BE target for Indirect Taxes for 2015-16, while there might be an equal amount of shortfall in Direct Tax collections,” Revenue Secretary Hasmukh Adhia said.

“However, both direct and indirect tax collections put together, we expect to meet the annual BE target of Revenue collections for the current year without any shortfall,” Adhia said in a statement. The tax revenue trends support the latest figures of GDP growth rate,” he said.

The government had earlier this week revised India’s economic growth estimates for 2015-16 sharply upward at 7.6 per cent. It is for the first time since 2011 that the government will be able to meet tax collection target.

The crude oil windfall, of course, has helped the government as the rise in excise collections has in turn raised overall indirect tax collection growth to 33.7 per cent in indirect taxes till January 31.

The slashed import bill due to fall in global crude prices, the higher excise earnings and reduced under-recoveries have brought the government a benefit of around Rs 5 lakh crore this fiscal, according to estimates.

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