Skip to main content

Indirect tax to help meet FY16 target

By
 The finance ministry said on Wednesday that tax collections stood at Rs.10.7 lakh crore in the first 10 months of FY16. This constituted 73.5 per cent of the Budget estimates ( BE) of Rs.14.5 lakh crore. According to the ministry, direct tax collections might fall short of the Budget target of about Rs.8 lakh crore in FY16 but it would be offset by robust indirect tax collections. As such, direct tax collections might have alower figure in the revised estimates of 2015- 16, compared to BE, while the indirect tax mop- up would have ahigher figure than BE of Rs.6.5 lakh crore. The ministry hoped it would meet tax collections target in FY16.

Amid critics doubting the latest gross domestic product ( GDP) numbers, which showed the economy growing 7.6 per cent in FY16, Revenue Secretary Hasmukh Adhia said the latest tax figures supported the GDP data. On the first upload on YouTube by the finance ministry, Adhia said direct tax collections were up 10.9 per cent at Rs.5.2 lakh crore till January of FY16 over that in the year- ago period, while indirect tax mop- up grew 33 per cent to Rs.5.4 lakh crore. Within direct tax collections, corporate tax rose 10.4 per cent and personal income tax by 11.8 per cent. The government has achieved 65 per cent of BE direct taxes in this period. Indirect tax collections in the first 10 months constituted 80 per cent of BE for 2015- 16. The revenue department expects an additional Rs.40,000 crore to come in from indirect taxes, which will offset the shortfall in direct tax mopup.

Analysing the trend in tax collections, Adhia said electrical machinery delivered 34.4 per cent higher Customs duty collections till January, compared to what it yielded in the corresponding period of the previous year. Similarly, imports of “ other machinery” brought in 27 per cent higher revenues from Customs duty.

Assessing the trending of growth in services sector, the average growth of service tax stood at 27.2 per cent during the first 10 months of 2015- 16 on a year- on- year basis.

Among the various sub- segments, bank and financial services saw service tax rise 39.9 per cent. Similarly, goods transport and services yielded 41 per cent higher service tax collections in the said period. The recent advance estimates released by the Central Statistical Office showed financial, real estate and professional services have been rising substantially.

Business Standard, New Delhi, 11 Feb 2016

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

By
  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...
Post a Comment
Read more