Indirect tax collections up 14.6% in April-July: Arvind Subramanian
12 August 2015
Indirect tax collections increase by 14.6 per cent in July 2015 and the first four months (April-July 2015) of the current financial year (2015-16), indicating that the underlying momentum in the economy continues to improve across all sectors, government's chief economic adviser Arvind Subramanian has said.
He said the growth rate of 14.6 per cent (excluding additional revenue generated through new measures) in collections in the first four months suggests a healthy increase in nominal GDP growth, which constitutes the tax base for indirect tax collections
The chief economic adviser was responding to the indirect tax collections figures released yesterday for the month of July 2015 by the Central Board of Excise and Customs (CBEC)
In July 2015, indirect tax collections increased by 39.1 per cent compared with July 2014. Cumulatively, in April-July 2015, indirect tax collections increased by 37.6 per cent over the same period last year.
These increases were spread across all three tax categories – customs, central excise and service tax.
Subramanian further said that these collections reflect in part additional measures taken, including the excise increases n diesel and petrol, the increase in clean energy cess, the withdrawal of exemptions for motor vehicles and consumer durables, and in June 2015, the increase in service tax from 12.36 to 14 per cent.
Customs duty collections, he said, have been aided by the rupee depreciation of 6 per cent between April and July.
Stripped of all additional revenue measures, indirect tax collections increased by 15.2 per cent in July 2015 over July 2014; and by 14.6 per cent for April-July 2015 compared to the April-July 2014, he added.