Indirect tax revenue collections increases by 37% in August
Amit Bhanot / 10 Sep 2015
Importantly withdrawal of exemptions for motor vehicles, capital goods and consumer durables and increase in Service Tax from 12.36 to 14 percent have also contributed towards this increase in indirect collection. If these measure won’t be there, increase in indirect tax collections could have been just 12% during April-August period.
After seeing a decline in the overall GDP growth during Q1, government got some respite now as indirect tax revenue collection has shown a decent spike during April-August 2015 period. Interestingly during August also indirect tax collection has moved northwards, giving well desired impetus to the reeling economy. In August provisional indirect tax revenue collections increased by 36.7% against same period last year. At the same time cumulative figures for indirect tax collection during April-August increased by 36.5% percent over the same period last year. Importantly asking rate for FY16 is at 18.8%.
On overall monetary terms, indirect tax revenue collections increased to Rs 2.63 lakh crore during April-August 2015 period as against Rs.1.93 lakh crore during April-August 2014. During August 2015 alone, the collections increased to Rs.54,396 crore from Rs.39,781 crore in August 2014.
Category wise collection of Central Excise increased from Rs.60,663 crore during April-August 2014 to Rs.1.03 lakh crore in April-August 2015, showing an increase of 69.7 %, while Service Tax collections increased from Rs. 61,693 crore in April-August 2014 to Rs. 75,006 crore in April-August 2015, an increase of 21.6 %. Customs collection increased from Rs. 70,321 crore in April-August 2014 to Rs. 85,138 crore in April-August 2015 and thereby registering an increase of 21.1 %.
With this increase government seems quite relieved and patting itself for the growth. “These collections reflect in part increase due to additional measures taken by the Government from time to time, including the excise increases on diesel and petrol, the increase in clean energy cess,” finance ministry release quoted. Importantly withdrawal of exemptions for motor vehicles, capital goods and consumer durables and increase in Service Tax from 12.36 to 14 percent have also contributed towards this increase in indirect collection. If these measure won’t be there, increase in indirect tax collections could have been just 12% during April-August period.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.