Indirect tax collections up 39%; excise reflects manufacturing uptickNew Delhi: Indirect tax collections rose by 39.2 per cent this fiscal with excise mop up almost doubling, a trend that Finance Minister Arun Jaitley said was reflective of a pick up in manufacturing
New Delhi: Indirect tax collections rose by 39.2 per cent this fiscal with excise mop up almost doubling, a trend that Finance Minister Arun Jaitley said was reflective of a pick up in manufacturing activity.
Indirect tax collections during the first two months (April-May) of the current financial year increased to Rs 96,128 crore, from Rs 69,069 crore during the same period in 2014-15, a 39.2 per cent increase, a finance ministry statement said.
"This is a very healthy growth in indirect taxes and since it is spread over all sectors it initially indicates a pick up in manufacturing particularly the excise collections have moved up," Jaitley told reporters here.
Central excise collections during April to May 2015 increased to Rs 38,535 crore, from Rs 20,493 crore during April to May 2014, registering an increase of 88 per cent.
"The underlying momentum in the economy is improving across all sectors, including manufacturing, as reflected in healthy excise collections during the first two months of the current financial year 2015-16," he added.
Customs collections during the two months increased to Rs 29,986 crore, up 19.5 per cent over Rs 25,094 crore during April-May 2014.
Service Tax collections during April-May 2015 increased to Rs 27,607 crore, from Rs 23,482 crore, up 17.6 per cent annually.
Jaitley said these indirect tax collections reflect in part the effect of the additional measures taken by the Central Government including the Central Excise increase on diesel and petrol, increase in clean energy cess, and the withdrawal of exemptions for motor vehicles and consumer durables.
He said that even after taking-out the impact of these additional measures, indirect tax collections have shown an increase of 16.9 per cent in May 2015 and by 12.6 per cent for the two-month period April-May 2015.
Asked if the increase in excise collection will be reflected in growth in factory data, he said, "Revenue is one indication.
That's (IIP) another indication. So cumulatively we have to add up all this. Since it is a pattern which has continued for two months it at least gives some green shoots."
The 16.9 per cent growth in indirect taxes after excluding the revenue generated from additional excise duties levied this fiscal, "is a fairly healthy growth", he said.