Indirect Tax Collections grows by 37% during first 4 months, FM optimistic

Amid fear of global slowdown impacting the growth of India, Government of India seems comfortable as some signs of revival of manufacturing  is quite visible on the ground. During the first 4 months of the current fiscal, indirect tax collection remained quite buoyant as it grew by 37% till July 2015.  Interestingly even if we adjust for the additional resource mobilization measures, due to increase in tax rates and withdrawal of exemptions, the growth rate is over 14%. The Government thinks that this is signs of revival of manufacturing and service sector is performing well.

It seems quite bullish about economic revival confesses finance minister Arun Jaitley; “Though the Indian economy is not impervious to global events, yet the growth in manufacturing and services sector, as reflected by the increase in indirect tax collections, and a fair monsoon indicate that the economy is showing strong revival and growth.” “The tax collection targets for 2015-16 are realistic and should be achieved," he added. 

He was speaking at the inaugurating the two day Annual Conference of the Chief Commissioners and Directors General of the Central Board of Excise & Customs (CBEC). While indicating towards the importance of GST he said that GST is a monumental reform that will benefit all segments of business, increase tax base, augment the revenues and is favoured by the State Governments and all other stake holders. 

While indicating towards efforts for the passage of Constitutional Amendment Bill, he said it will soon see the light of the day and advised the CBEC that it should be in readiness to implement the GST by having model draft laws and Information Technology preparedness. Finance Minister also inaugurated the new and revamped CBEC website on this occasion.