Just a day before the end of 50-day demonetisation drive, Finance Minister Arun Jaitley on Thursday said positive impact of the process is clearly visible with tax collection figures seeing double-digit growth and economic activities, including winter crop sowing, increasing significantly.
“The impact of demonetisation on tax revenue and collection is already visible. There has been a 26.2 per cent increase in central indirect tax collection till November 30. Till December 19, direct tax collection increase has been to the extent of 14.4 per cent,” said Jaitley.
Direct tax kitty has swelled to Rs 5.57 lakh crore between April 1 and December 19, thereby achieving 65 per cent of budget estimates, while mop up from indirect tax, which comprises customs, excise and service tax, in April-November period jumped 26.2 per cent to
Rs 7.53 lakh crore.
“Revenue figures itself are more significant. Notwith-standing what the critics have predicted in all the categories till November 30, there is a significant increase in indirect taxation. In the central indirect taxes, the increase is 26.2 per cent,” he added.
Belying fears of slowdown in industrial activity post demonetisation, the indirect tax collection in November alone grew 23.1 per cent to Rs 67,358 crore.
“Irrespective of what critics had predicted, figures revealed that till November 30, there is a significant increase in indirect taxes. We have also tried to check the figures for the month of November which could have been adversely impacted on account of the currency replacement compared to November 2015. On year-to-year basis, in November 2016, for all the three indirect taxes, the collection is much high,” he added.
For November alone, Customs collection grew 16.1 per cent to Rs Rs 0,510 crore, excise by 33.7 per cent to Rs 29,664 crore, and service tax by 15.5 per cent to Rs 17,178 crore. The Government is eyeing 12.64 per cent growth in direct taxes at Rs 8.47 lakh crore for the current fiscal and 10.8 per cent in indirect taxes at Rs 7.79 lakh crore.
With Rs 5.57 lakh crore already mopped up till December 19, 65 per cent of the Budget target stands achieved.
Advance tax payment till the third quarter has gone up by 14 per cent as compared to a growth of 7.3 per cent in the same period of 2015-16 fiscal.
Tax Deducted at Source (TDS) has seen a jump of 15 per cent as compared to 11.43 per cent last year. Also, collection from self assessment tax has soared by 21.14 per cent, as against 6.47 per cent last fiscal — reflecting results of anti black money measures undertaken by the Government.
Between April 1 and December 19, Income tax collection has risen to Rs 2.20 lakh crore, as opposed to Rs 1.82 lakh crore in the corresponding period of previous year. On indirect tax front, revenue has jumped 26.2 per cent till November 30 with central excise showing a surge of 43.5 per cent and customs of 5.6 per cent and service tax of 25.7 per cent.
“On November 8, the Prime Minister asked the country to support him notwithstanding several inconveniences being suffered by people during the demonetisation period. We are extremely grateful to the people of India who have in very large measure, supported the move,” Jaitley said.
Ahead of expiry of the 50-day deadline for depositing the junked Rs 500 and Rs 1,000 notes on Friday he said the demonetisation process has substantially advanced, significantly without a single incident of unrest anywhere in the country.