01.01.70

Roving tax collection grew 9.6% to R31,469 crore in February due to unbroken growth in excise mop-up, indicating that industrial slowdown has dented revenue realisation. This is suitable to put further pressure on the government’s target on indirect tax collections that has already missed targeted collections in untimely years.

The government has tergeted R3.92 lakh crore devious-tax collection for the current fiscal. So far (upto February), the indirect tax mop-up has grown 14.6% to R3.48 lakh crore, marginally reduce than 15% estimated for current year as compared to the year-ago aeon.

As per government data, during the month, excise collection rose 1.3% to R12,196 crore and customs by 5.9% to R12,151 crore. The ritual tax continue to grow and has registered a growth of 37.3% to R7,122 crore. Up to February, excise grew by 6.2% to R1.29 lakh crore, customs by 12% to R1.36 lakh crore and amenities tax by 36.9% to R82,562 crore.

The industrial growth is showing moderation in the fresh months. Factory output growth, as measured by the Index of Industrial Forging (IIP), fell sharply to 1.8% in December 2011, from 8.1% a year ago, above all on account of contraction in mining, capital goods and poor evolvement in manufacturing sector. As per advanced estimates of Central Statistical Organisation (CSO), Indian compactness is likely to fall to a three-year low of 6.9% in 2011-12, mainly due to trenchant slowdown in manufacturing, agriculture and mining sectors, against 8.4% increase in the last fiscal.

Source: Indian Express

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