FY17 revenue: Shoulder tax collections up 23% in first 5 months

Corporation tax down 2% after refunds, customs duty grows only moderately

The government has collected Rs 5.25 lakh crore from taxes in the first five months of the current financial year, nearly 23% higher than the Rs 4.27 lakh crore in the corresponding period of 2015-16.

However, corporation tax collections fell 1.9% due to high refunds and customs duty receipts rose only 5.7%, with sluggish imports. 

The total collection in April-August was 32.2% of the budget estimate (BE) of Rs 16.31 lakh crore for all of 2016-17, showed figures issued by the finance ministry on Monday. Direct tax collections were up 15% at Rs 1.9 lakh crore, against Rs 1.64 lakh crore in the same period a year before; about 22.3% of the BE for 2016-17 had been achieved.

Gross corporation tax collections, inclusive of refunds, rose 11.6% over the first five months of FY16. Net of refunds, it fell 1.9%. Personal income tax rose 24.1%, inclusive of refunds. Excluding refunds, it grew 31.8%. Direct tax refunds of Rs 77,080 crore were issued in these five months, about 22.2% higher than those in the corresponding period of FY16. 

Indirect tax revenues rose 27.5% to Rs 3.36 lakh crore in these five months, about 43.2% of the BE here for FY17. 

Central excise duties yielded Rs 1.53 lakh crore, higher by 48.8% from the Rs 1.03 lakh crore earlier. Part of the growth would have come from additional duties imposed on petroleum but the finance ministry did not give a break-up. An estimate can be had, as manufacturing production fell 1.4% in April-July in volume terms, against 4% growth in the corresponding period of FY16.

Service tax receipts were Rs 92,696 crore in April-August, up 23.2% over the Rs 75,219 crore in the earlier period.

Subdued merchandise imports led to muted growth of 5.7% in customs duty collection at Rs 90,448 crore, compared to April-July last year. Trade figures for August are yet to be had. Merchandise imports were down 16.3% at $114 bn in April-July, from $136.3 bn in the period last year.