Indirect tax collection up 39.2%; excise reflects mfg uptick
New Delhi, Jun 10 Indirect tax collection has jumped 39.2 per cent in April-May, with excise showing a smart rise reflecting pick up in manufacturing, Finance Minister Arun Jaitley said today.
The collection of indirect taxes in all three categories – customs, central excise and service tax – has shown rising trend in the current financial year, 2015-16, he said.
“Data for the indirect tax collections for the month of May is now available. In May 2015, collections have increased by 37.3 per cent. Therefore, cumulatively for April and May compared to past year, the increase is by 39.2 per cent,” Jaitley told reporters here.
He however did not share the absolute numbers of tax collections.
A significant part of rise in collections was on account of the additional cess imposed on diesel and petrol as well as the clean energy cess, he said.
“Now even if the impact of this additional sectors is excluded, in May the increase would be 16.9 per cent and cumulatively the increase would be 12.6 per cent for the two months,” he said.
“This is a very healthy growth in indirect taxes and since it is spread over all sectors it initially indicates a pick up in manufacturing particularly the excise collections have moved up,” he added.
The increase in excise collection was reflective of pick up in manufacturing sector, Jaitley said.
The 16.9 per cent growth in indirect taxes after excluding the revenue generated from additional excise duties levied this fiscal, “is a fairly healthy growth”, he said.
Asked if the increase in excise collection will be reflected in growth in factory data, he said, “Revenue is one indication. That’s (IIP) another indication. So cumulatively we have to add up all this. Since it is a pattern which has continued for two months it at least gives some green shoots.”
On his meeting with farmers on the amendments the government has made to the Land Acquisition Bill of 2013, Jaitley said he had explained the provisions of the bill to them. Also, farmer bodies gave suggestions on the issue.
“There is very little difference between the government’s approach and their approach. So I will send their suggestions to the concerned minister and I will talk to him,” he added.
Source:- PTI http://www.ptinews.com/news/6130450_Indirect-tax-collection-up-39-2—excise-reflects-mfg-uptick-.html