Millennium Post
Business

Indirect tax collections rise 16.1% in May

Indirect tax collections have increased by 16.1 per cent to Rs 37,166 crore in May on the back of rise in excise duty and service tax rates.

The overall growth in indirect tax revenue collection during the month of May 2012, is about 16.1 per cent which is 5.7 per cent higher than last month’s position, an official release said.

The indirect tax – excise duty, customs and service tax – collection had totalled Rs 32,019 crore in May 2011.

During the month, service tax collection grew by hefty 45.4 per cent to Rs 8,607 crore compared to Rs 5,918 crore in the same month of the previous fiscal.

Collection from excise at the same time was up 16.2 per cent at Rs 14,693 crore against Rs 12,640 crore in May 2011.

The customs growth is at 3 per cent in May, though the growth in April was negative. The government has increased both the excise duty and service tax by 2 per cent each to 12 per cent in the Budget.

The percentage of growth in revenue during May 2012, after adjustment for deep cuts in duty rate on petroleum and petroleum products made effective from June, 25 2011, reflects the overall growth of 27.6 per cent over the revenue collection during May 2011, the release said.

During the first two months of the current fiscal, the government garnered Rs 70,211 crore from indirect taxes against Rs 61,955 crore in the same period of 2011-12.

The progressive growth of indirect taxes during April-May this financial year is 13.3 per cent.
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