Recent data have shown that the government’s revenue collection from indirect tax during April 2016 –February 2017 grew by an impressive 22.2 percent while that of direct tax rose by 10.7 percent.
Total direct and indirect tax collections at February-end 2017 stood at Rs 13.89 lakh crore, 81.5 percent of the target of Rs 16.99 lakh crore, as per the revised estimate for 2016-17.
Direct tax revenue includes corporate and personal income tax. Indirect tax takes into account mobilisation from excise, service tax and Customs duty.
- The total direct tax of Rs 6.17 lakh crore and indirect tax collection was Rs 7.72 lakh crore, led by robust collections in personal income tax and excise duty, respectively.
- Collection from excise duty in the first 11 months (April 2016 to February 2017) — a reflection on manufacturing activity — registered a growth of 36.2 percent at Rs 3.45 lakh crore.
- Service tax revenues too recorded an increase of 20.8 percent at Rs 2.21 lakh crore. Customs collection came in at Rs 2.05 lakh crore, a growth of 5.2 percent.
- The gross collection of corporate income tax (CIT) grew at 11.9 percent while under personal income tax (PIT), it was 20.8 percent over the same period last fiscal.
- After adjusting for refunds, however, the net growth in CIT collections is 2.6 percent while under PIT, it is 19.5 percent. Refunds amounting to over Rs 1.48 lakh crore have been issued during April-February, up 40.2 percent from a year ago.
- According to a government statement, the direct tax collections up to February 2017 continue to show a steady growth trend.
- During February 2017, net indirect tax collections grew 8.4%, with customs, central excise and service tax collections growing 10.9%, 7.4% and 7.6%, respectively.
- For direct taxes, the collection is slightly lower than what they had estimated and it is more because of the underperformance of the corporate income tax.