Customs duty collection of India grew by 32.8% to Rs 18,116 crore in September 2014, indicating that domestic economy and investment cycle may have turned with increased non-oil imports contributing to the rise in collections. However, 0.4% decrease in excise collections to Rs 14,288 crore indicates that manufacturing remains sluggish. The Narendra Modi new initiative ‘Make in India’ may help in boosting manufacturing sector. Service tax collections in August increased 5.8% to Rs 15,608 crore against Rs 14,755 crore last year.
Overall indirect tax collections increased 5.8% in the first half of the current financial year. The finance ministry is hopeful of a pick-up in collections in the second half as economic recovery strengthens.
The growth in indirect taxes is much less than 25% envisaged in the Budget for 2014-15, but the pace is accelerating. Overall indirect tax collections grew 12.3% in September, to Rs 48,012 crore. The government has fixed a target of Rs 6.24 lakh crore for indirect tax collections in 2014-15.