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Indirect tax mop ups grow 16% to Rs2,85,787 crore
Amid a current fiscal was marred by concerns of a global meltdown and the economic growth charting a haphazard path, the Government has something to cheer about as its indirect tax collections went up 16 per cent to Rs2,85,787 crore during the April-December period, riding on a sharp increase in service tax collections.
During the April-December period of 2010-11, the total collections of indirect tax which include customs, central excise as well as service tax were at Rs2,46,168 crore.
Buoyed by the increase in the tax collection figures, Central Board of Excise and Customs Chairman S K Goel expressed confidence that the Government would be able to meet the Budget Estimate target of Rs 3,92,908 crore.
The Government till date has achieved 72.7 per cent of the total indirect tax collection target for the current fiscal as per the budgetary estimates.
The collection has shown a growth despite Rs36,000 crore revenue forgone on account of customs and excise tax cut on petroleum products.
The levies were slashed in June to provide a cushion to consumers against hike in prices of diesel, kerosene and LPG were hiked.
The tax mop up in December was Rs 34,819 crore, up 15.9 per cent from Rs 30,054 crore in the year ago period.
Singling out the December figure of central excise collection, Goel said that the collection in December 2011 was Rs12,546 crore, which was 9.7 per cent more than Rs 11,440 crore collected as indirect tax revenue in the same category during December 2010.
“December has given a positive news particularly on the central excise front, as the November 2011 collection figures were negative,” Goel said, adding that the mop up in central excise had declined by 6.5 in November and by 8.7 per cent in September, though it had shown positive growth in October.
He further said that service tax collection continues to be strong and has shown 48.6 per cent expansion in December to Rs 9,665 crore from the year ago period, when it was Rs 6,505 crore
There have been concerns on the economic growth prospects of the country in wake of high cost of credit coupled with global scenario.
The economy is expected to slow to about 7 per cent this fiscal, against 8.5 per cent in the previous year.
As per indirect tax data, the collection in customs duty increased to Rs12,608 crore in December 2011, up 4.1 per cent from Rs12,109 crore in the same month of 2010. During April-December, the customs collection was Rs 1,12,670 crore, up 13.8 per cent year-on-year.
Hoping that excise duty mop-up will further increase in the remaining months of the fiscal, Goel said officials have been asked to further streamline collection process.
Aked about the reason for increase in excise collections in December, he said small businesses have started paying the levy. Besides, businesses which have exhausted their CENVAT credit are now paying the tax in cash.
Excise collection in December 2011 was 12,546 crore and in three quarters was Rs 1,05,411 crore. Service tax collection in December 2011 was 9,665 crore and during April-December was 67,706 crore.
The CBEC chief also said that the extension of the date for filing service tax to January 6 had also helped in increasing the collection of levy. He indicated that the deadline for service tax may be further extended.
Amid a current fiscal was marred by concerns of a global meltdown and the economic growth charting a haphazard path, the Government has something to cheer about as its indirect tax collections went up 16 per cent to Rs2,85,787 crore during the April-December period, riding on a sharp increase in service tax collections.
During the April-December period of 2010-11, the total collections of indirect tax which include customs, central excise as well as service tax were at Rs2,46,168 crore.
Buoyed by the increase in the tax collection figures, Central Board of Excise and Customs Chairman S K Goel expressed confidence that the Government would be able to meet the Budget Estimate target of Rs 3,92,908 crore.
The Government till date has achieved 72.7 per cent of the total indirect tax collection target for the current fiscal as per the budgetary estimates.
The collection has shown a growth despite Rs36,000 crore revenue forgone on account of customs and excise tax cut on petroleum products.
The levies were slashed in June to provide a cushion to consumers against hike in prices of diesel, kerosene and LPG were hiked.
The tax mop up in December was Rs 34,819 crore, up 15.9 per cent from Rs 30,054 crore in the year ago period.
Singling out the December figure of central excise collection, Goel said that the collection in December 2011 was Rs12,546 crore, which was 9.7 per cent more than Rs 11,440 crore collected as indirect tax revenue in the same category during December 2010.
“December has given a positive news particularly on the central excise front, as the November 2011 collection figures were negative,” Goel said, adding that the mop up in central excise had declined by 6.5 in November and by 8.7 per cent in September, though it had shown positive growth in October.
He further said that service tax collection continues to be strong and has shown 48.6 per cent expansion in December to Rs 9,665 crore from the year ago period, when it was Rs 6,505 crore
There have been concerns on the economic growth prospects of the country in wake of high cost of credit coupled with global scenario.
The economy is expected to slow to about 7 per cent this fiscal, against 8.5 per cent in the previous year.
As per indirect tax data, the collection in customs duty increased to Rs12,608 crore in December 2011, up 4.1 per cent from Rs12,109 crore in the same month of 2010. During April-December, the customs collection was Rs 1,12,670 crore, up 13.8 per cent year-on-year.
Hoping that excise duty mop-up will further increase in the remaining months of the fiscal, Goel said officials have been asked to further streamline collection process.
Aked about the reason for increase in excise collections in December, he said small businesses have started paying the levy. Besides, businesses which have exhausted their CENVAT credit are now paying the tax in cash.
Excise collection in December 2011 was 12,546 crore and in three quarters was Rs 1,05,411 crore. Service tax collection in December 2011 was 9,665 crore and during April-December was 67,706 crore.
The CBEC chief also said that the extension of the date for filing service tax to January 6 had also helped in increasing the collection of levy. He indicated that the deadline for service tax may be further extended.
