(Adds details, background)
By Arup Roychoudhury
NEW DELHI, July 18 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
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
Factory gate tax receipts grew at 29.8 percent during the
first three months of the current fiscal year to 411.47 billion
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)