Indirect tax collection in Apr-Oct up 42 per cent
17 Nov 2010
The government's indirect tax for the first seven months of the financial year (April-October) was up 42 per cent at Rs1.8 lakh crore, which according to analysts indicates that the industrial growth in the country might gather steam over the coming months.
''Total revenue collections from the indirect taxes at all India level during April-October stood at Rs1,80,261 crore, which is 57.5 per cent of the budget estimates of 2010-11,'' the finance ministry said yesterday.
Revenue collections from customs were up 65.9 per cent at Rs 75,349 crore over the corresponding period last year. Central excise collections shot to Rs 71,078 crore in April-October 2010, marking a growth of 36.2 per cent.
Analysts say the high tax collections from excise and customs point to an industry in expansion mode and the abysmally low figure recorded in August and September may well prove to be an aberration.
Industrial growth fell to a 16-month low of 4.4 per cent in September while in August it had expanded by 6.92 per cent. Kaushik Basu, chief economic advisor, yesterday exuded confidence that industrial growth would pick up from next month.
''The (IIP) data that you will get on December 12 (for October) should see a reasonably good recovery,'' Basu said. The services sector--service tax-for the period was Rs 33,833 crore up by 16.9 per cent.
