Indirect tax collection grew 9.6% to R31,469 crore in February due to flat growth in excise mop-up,indicating that industrial slowdown has dented revenue realisation. This is likely to put further pressure on the governments target on indirect tax collections that has already missed targeted collections in previous years.
The government has tergeted R3.92 lakh crore indirect-tax collection for the current fiscal. So far (upto February),the indirect tax mop-up has grown 14.6% to R3.48 lakh crore,marginally lower than 15% estimated for current year as compared to the year-ago period.
As per government data,during the month,excise collection rose 1.3% to R12,196 crore and customs by 5.9% to R12,151 crore. The service tax continue to grow and has registered a growth of 37.3% to R7,122 crore. Up to February,excise grew by 6.2% to R1.29 lakh crore,customs by 12% to R1.36 lakh crore and service tax by 36.9% to R82,562 crore.
The industrial growth is showing moderation in the recent months. Factory output growth,as measured by the Index of Industrial Production (IIP),fell sharply to 1.8% in December 2011,from 8.1% a year ago,mainly on account of contraction in mining,capital goods and poor growth in manufacturing sector. As per advanced estimates of Central Statistical Organisation (CSO),Indian economy is likely to fall to a three-year low of 6.9% in 2011-12,mainly due to sharp slowdown in manufacturing,agriculture and mining sectors,against 8.4% expansion in the last fiscal.