UPDATE 1-India's Q1 indirect tax growth picks up

Wed Jul 18, 2012 7:00pm IST

(Adds details, background)

By Arup Roychoudhury

NEW DELHI, July 18 (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 ($18.16 billion) from 948.5 billion ($17.1 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.

($1=55.46 Indian rupees) (Writing by Manoj Kumar; Editing by Prateek Chatterjee)

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 EXCLUSIVE

REUTERS SHOWCASE

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

Modi In U.S.

Modi In U.S.

Obama, Modi work to deepen improving U.S.-India ties  Full Article | Full Coverage 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Hopeful of Profit

Hopeful of Profit

GM sees first European profit in 2016 after years of losses  Full Article 

Reuters India Mobile

Reuters India Mobile

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