FY16 indirect tax collection: Govt mops up Rs 7.09 lakh crore, beats revised estimates

The increase in indirect tax collections is, however, in contrast to direct tax collections, which are likely to fall short of their FY16 revised estimates. According to the data released for April-February, direct tax revenue collections stood at around Rs 5.54 lakh crore, around Rs 1.98 lakh crore short of the revised FY16 aim of Rs 7.52 lakh crore. The total tax revenue for the first eleven months of FY16 stood at Rs 7,35,778 as against the revised estimate of Rs 9,47,508 crore.

The finance ministry, however, had on Friday said that it expects to be within its fiscal deficit target of 3.9 per cent of the GDP for 2015-16. The ministry said initial estimates showed it has achieved all other fiscal targets, including those for tax revenue and disinvestment, adding that the government remains committed to the path of fiscal consolidation.

Shah also said that increase in excise duties on petroleum products helped increase the excise duty collections, even though there was a fall in global crude oil prices.

Faced with a low nominal GDP growth and huge shortfall in disinvestment revenue, the Centre took a number of measures, including a series of hikes in excise duty on petrol and diesel to boost revenue. Despite a fall in global oil prices, the government did not completely pass on the benefit of lower oil prices to consumers. The steps would help the Centre collect additional revenue of Rs 28,473 crore, according to the revised estimate for FY16.

In the Budget, finance minister Arun Jaitley announced sharp upward revision in indirect tax collections by Rs 55,724 crore to Rs 7.04 lakh crore. For 2016-17, the government aims to collect Rs 7.80 lakh crore, a rise of 10.8 per cent over the revised estimates for the financial year ended March 31.

Among indirect taxes in the form of customs, excise and service tax, the highest revision was seen for excise duty, which was revised to Rs 2.84 lakh crore from Rs 2.30 lakh crore for 2015-16.