Indirect tax kitty swells by 30%, direct tax by 24%

Revenue collection has shown remarkable buoyancy in the first four months of this fiscal with indirect tax collections rising almost 30 per cent up to July 2016 and the direct tax kitty swelling by 24 per cent.

Indirect tax collections up to July 2016 indicate net collections of Rs 271,719 crore as compared to Rs 209,217 crore in the corresponding period last year, an increase of 29.9 per cent over the corresponding period. This amount is 34.9 per cent of the Budget estimates of indirect taxes for FY 2016-17 achieved till July 2016.

Direct tax collections up to July indicate net revenue collections of Rs 159,000 crore, thus registering an increase of 24.01 per cent over the corresponding period last year. This is 18.82 per cent of the Budget estimates for FY 2016-17. Refunds amounting to Rs 64,181 crore have been issued during April-July which is 10.43 per cent higher than the refunds issued during the corresponding period last year.

Indirect tax collections on account of Central excise stood at Rs 31,782 crore in month of July as compared to Rs 20,658 crore during July 2015, thereby registering a growth of 53.8 per cent. Total collections on account of Central excise during the first four months of current FY 2016-17 stood at Rs 123,273 crore as compared to Rs 81,748 crore during the same period in the last fiscal, a rise of 50.8 per cent.

Tax collections on account of service tax stood at Rs 19,600 crore in July as compared to Rs 15,685 crore during July 2015, thereby registering a growth of 25 per cent. Total collections on account of service tax during the first four months of current FY 2016-17stood at Rs 76,679 crore as compared to Rs 60,974 crore during the same period in last financial year, a growth of 25.8 per cent.

Tax collections on account of customs stood at Rs 16,959 crore in July as compared to Rs 19,045 crore during July 2015, showing a decline of 11 per cent in this period. Total collections on account of customs during April-July stood at Rs 71,767 crore, as compared to Rs 66,495 crore during the same period in last fiscal, a growth of 7.9 per cent.

As regards the growth rates for corporate income tax (CIT) and personal income tax (PIT), in terms of gross revenue collections, the growth rate under CIT is 11.65 per cent while that under PIT (including STT, etc.) it is 31.47 per cent. However, after adjusting for refunds, the net growth in CIT collections is 2.84 per cent, while that in PIT collections is 46.55 per cent.