Rise in indirect tax collections well below year’s 26% target

Indi­rect Tax col­lec­tions rose 12.3 per cent in Sep­tem­ber over a year ear­li­er, to Rs 48,012 crore as com­pared to Rs 42,738 crore in the same month last year, due to a big rise in cus­toms duty collection. 

Even so, the Sep­tem­ber growth was low­er than the 26 per cent tar­get for the cur­rent finan­cial year. The excise dutycol­lec­tions also fell indi­cat­ing man­u­fac­tur­ing is yet  to gath­er steam. Col­lec­tions from cus­toms duty were Rs 18,116 crore in Sep­tem­ber, com­pared with Rs 13,644 crore in Sep­tem­ber 2013, mark­ing a rise of 32.8 per cent. Ser­vice tax col­lec­tionsrose 5.8 per cent to Rs 15,608 crore.

The data, issued by the finance min­istry on Tues­day, indi­cat­ed man­u­fac­tur­ing activ­i­ty is yet to pick up. Excise duty col­lec­tion dropped 0.4 per cent to Rs 14,288 crore in Sep­tem­ber, com­pared to the same month last year. Man­u­fac­tur­ing out­put had declined 1.4 per cent in August, after a fall of one per cent in July.

In the first six months of the cur­rent finan­cial year (April-Sep­tem­ber), indi­rect tax col­lec­tions rose 5.8 per cent to Rs 241,811 crore, against Rs 228,619 crore in the cor­re­spond­ing peri­od a year before.

Total indi­rect tax col­lec­tions in these first six months were only 38.8 per cent of the Bud­get Esti­mate of a 26 per cent rise for the full year, of Rs 623,244 crore.