Q1 indirect tax growth picks up

NEW DELHI Wed Jul 18, 2012 7:33pm IST

An employee counts rupee notes at a cash counter inside a bank in Kolkata June 18, 2012. REUTERS/Rupak De Chowdhuri/Files

An employee counts rupee notes at a cash counter inside a bank in Kolkata June 18, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

NEW DELHI (Reuters) - India's indirect tax receipts grew 13.8 percent in the quarter ended June, said a senior tax official, faster than the previous quarter, due to an increase in tax rates in the budget.

Indirect tax receipts, which reflect industrial and service sector activity in the economy, grew at nearly 8 percent in the previous quarter.

The growth in indirect taxes, comprising customs, factory gate and service tax, is still lower than the annual target of 27 percent growth for the current fiscal year.

Finance ministry officials are worried that the economic slowdown may hurt tax collections, and it would not be easy to meet the targeted 5.1 percent fiscal deficit of GDP this year amid rising oil and food subsidy bills.

In the April-June period, indirect tax receipts rose to 1.07 trillion rupees from 948.5 billion in the year-ago period, S K Goel, chairman of the Central Board of Excise and Customs, told reporters on Wednesday.

Factory gate tax receipts grew at 29.8 percent during the first three months of the current fiscal year to 411.47 billion rupees.

In the March quarter, factory gate tax growth had dipped to nearly one percent.

Gross direct tax collections, comprising corporate and individual income tax, grew at 6.77 per cent during the June quarter, less than the targeted annual growth of 15 per cent.

(Writing by Manoj Kumar; Editing by Prateek Chatterjee)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Wipro Results

Wipro Results

Firm sees strong sales growth, eyes Europe deals   Full Article 

Scourge of Inflation

Scourge of Inflation

Markets' post-election enthusiasm lost on consumers  Full Article 

Just Not Enough

Just Not Enough

Amazon's smartphone fails to kindle a "Fire" among reviewers.  Full Article 

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Mining Roadblock

Mining Roadblock

Coal India's plans for 20 mines hit by land, environment delays  Full Article 

Power Jolt

Power Jolt

UAE's TAQA pulls out of India power plant deal with Jaiprakash  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage