Indirect tax collections grow 37 percent in first quarter

New Delhi, July 11 (IANS) The overall growth in indirect tax revenue collections during the first quarter (April-June) of fiscal 2015-16 have increased by 37.4 percent, according to official data released here on Saturday.

“The overall growth in indirect tax revenue (provisional) collections during the first quarter of current fiscal year, that is, April-June 2015 have increased from Rs.112,094 crore to Rs.153,980 crore suggesting an increase of 37.4 percent over the corresponding period in the last financial year,” the statement said.

It added that in June 2015, the indirect tax collections increased by 33.3 percent compared to June 2014.

These increases were spread across all three tax categoriesa”customs, central excise, and service tax.

“These collections reflect in part additional measures taken, including the excise increases on diesel and petrol, the increase in clean energy cess, the withdrawal of exemptions for motor vehicles and consumer durables, and in June, the increase in service tax from 12.36 percent to 14 percent,” it said.

“Stripped of all these additional measures, indirect tax collections increased by 10.8 percent in June 2015 over June 2014; and by 14.5 percent for the first quarter of FY 2015-16 compared to the first quarter of FY 2014-15,” the statement said.

It further stated that these collections indicate that the underlying momentum in the economy is improving, across all sectors, including manufacturing, reflected in healthy excise tax collections.

“The growth in underlying indirect tax collections of 14.5 percent suggests a healthy increase in nominal GDP (gross domestic product) growth which constitutes the tax base for indirect tax collections,a the statement added.

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