Despite a likely shortfall in direct tax collections, the government will meet its Budget aim of total tax collections for 2015-16 due to higher-than-anticipated indirect tax mop-up, Revenue Secretary Hasmukh Adhia said on Wednesday.
“We are likely to exceed the collection in indirect tax by about Rs 40,000 crore in the current year. On the whole, we are optimistic of close to 100 per cent achievement of overall tax revenue target of the year,” Adhia tweeted. The Budget had set a target of Rs 14.49 lakh crore for total tax collections, including direct and indirect taxes.
Indirect tax collections during April-January have risen 33 per cent on year, while direct taxes have grown 10.9 per cent, Adhia said.
“Both put together, we have achieved 73.5 per cent of BE (Budget Estimate) target,” he said. Of the total tax revenue target, direct taxes (corporate and income tax) will constitute Rs 7.97 lakh crore, while indirect taxes (customs, excise and service tax) will be Rs 6.47 lakh crore.
In 2014-15, the government had targeted Rs 13.64 lakh crore in tax revenues but at the end of the year it was revised downwards to Rs 12.51 lakh crore. Direct tax collections were Rs 7.05 lakh crore, short of Rs 7.36 lakh crore target, while indirect tax revenues were at Rs 5.42 lakh crore but were short of the target of Rs 6.24 lakh crore.