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

Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

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

WTO Row

WTO Row

Kerry presses India on global trade deal as deadline looms  Full Article 

Fed Policy

Fed Policy

Fed presses forward with bond buying, cites uptick in inflation.  Full Article 

Q2 Profit Slips

Q2 Profit Slips

Samsung sees tough second half  Full Article 

Chinese Economy

Chinese Economy

China should set lower 2015 GDP growth target of 6.5-7 percent - IMF  Full Article 

Default Imminent

Default Imminent

Argentina fails to reach debt agreement   Full Article 

Economy Reboots

Economy Reboots

U.S. economy back on track with strong second-quarter rebound  Full Article 

Reuters India Mobile

Reuters India Mobile

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