The government’s customs duty collections grew 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% contraction in excise collections to Rs 14,288 crore indicates that manufacturing remains sluggish. The Narendra Modi-led government, which assumed charge in May, is trying to speed up project clearances and has launched a ‘Make in India’ initiative to boost manufacturing in the country.
Service tax collections in August increased 5.8% to Rs 15,608 crore against Rs 14,755 crore a year ago, according to official data released on Tuesday.
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, compared to the year-ago period, to Rs 48,012 crore. The government has fixed atarget of Rs 6.24 lakh crore for indirect tax collections in 2014-15.
Courtesy: Economic Times