Indirect tax collections up 4.5 % in April-June

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Indirect tax mop up inched up by 4.5 per cent in the April-June quarter of the current fiscal due to decline in custom duty and excise duty collections, reflecting slump in manufacturing activity.

Indirect tax collections comprising excise, customs and service tax stood at about Rs 1,13,570 crore in the first quarter of 2014-15 fiscal, as against Rs 1,08,639 crore in the corresponding period a year ago, the finance ministry said in release.

The growth at 4.5 per cent is far less than 25 per cent increase envisaged in the Budget for the full 2014-15 fiscal.

Excise collection contracted 0.2 per cent during the quarter to over Rs 35,159 crore.

Customs mop up has declined by 3.1 per cent to over Rs 39,549 crore during April-June period against Rs 40,796 crore in the same period a year ago.

Service tax collection, which has become a new focus area for revenue officials, grew by 19.1 per cent to Rs  38,862 crore during the period, the statement said.

With an aim to widen the service tax net, the government had introduced the concept of negative list of taxation.        

Daily Pioneer
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