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Customs, excise mop-up rises on better factory output, imports

The government has budgeted Rs 6,24,902 crore from indirect taxes this year.

The tax collection from customs and excise became positive for the first time during the current financial year in June, backed by rising industrial output and imports. The indirect tax collection during the April-June period however rose only 4.5 per cent to stand at Rs 1,13,570 crore.

Indirect tax collection, comprising customs duty, central excise and service tax, was Rs 1,08,639 crore during the corresponding period in FY14.

Collection from customs duty turned positive after two months, to grow at 6 per cent in June. The customs duty collection stood at Rs 14,308 crore during the month compared to Rs 12,484 crore during the corresponding year ago period. During the month, imports increased by 8.33 per cent to $38.24 billion,  turning positive after 12 months.

Customs duty collection in April and May had contracted 10.6 per cent (Rs 11,702 crore) and 4.8 per cent (Rs 12,638 crore) respectively due to declining imports. Total collection from the customs duty during the first quarter of FY15 stood at Rs 38,549 crore, down -3.1 per cent from the corresponding period last year when it stood at Rs 40,796 crore.

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Similarly, collection from excise duty also showed growth in June after contracting for two months in a row. It stood at Rs 14,666 crore in June, up 8.1 per cent year-on-year. It was Rs 13,565 crore during the same period in FY14.

The growth was in wake of a robust performance by the index of industrial production, which grew 4.7 per cent in May, the highest since October 2012, pulled up by healthy performance of the electricity and manufacturing sector. The manufacturing sector grew 4.8 per cent during the month compared to a contraction of 3.2 per cent in FY14.

The excise duty collection was in the negative zone during April and May, contracting 4.9 per cent and 5.8 per cent respectively.

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However, excise duty collection during the April-June period shrank 0.2 per cent to stand at Rs 35159 crore. Service tax collection however grew at a robust 27.9 per cent during the month to Rs 15,382 crore compared to Rs 12,026 crore in the corresponding year ago period.

The service tax collection grew 12.8 per cent and 15.4 per cent in April and May respectively. During the April-June period, it grew 19.1 per cent at Rs 38,862 crore.

The government has budgeted Rs 6,24,902 crore from indirect taxes this year of the total revenue target of Rs 13.64 lakh crore.

First published on: 23-07-2014 at 03:08:02 am
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