Tax collection up to January 2017 shows trend of healthy growth

The tax collection figures up to January 2017 have shown consistent trend of healthy growth in both Direct and Indirect Taxes as the net indirect tax grew at the rate of 16.9 percent compared to corresponding month last year with growth rate in net collections for customs, central excise and service tax at the rate of 10.1 percent, 26.3 percent and 9.4 percent respectively January, 2017.

The figures for indirect tax collections (Central Excise, Service Tax and Customs) up to January 2017 show that net revenue collections are at Rs. 7.03 lakh crore, which is 23.9 percent more than the net collections for the corresponding period last year. Till January 2017, about 82.8 percent of the Revised Estimates (RE) of indirect taxes for Financial Year 2016-17 has been achieved.

In regards to the Central Excise, the net tax collections stood at Rs. 3.13 lakh crore during April-January, 2016-17 as compared to Rs.2.23 lakh crore during the corresponding period in the previous Financial Year, thereby registering a growth of 40.5 percent.

The net tax collections on account of service tax during April-January, 2016-17 stood at Rs. 2.03 lakh crore as compared to Rs.1.66 lakh crore during the corresponding period in the previous Financial Year, thereby registering a growth of 22.0 percent.

However, in case of Direct Taxes, the figures of collections up to January, 2017 show that net collections are at Rs. 5.82 lakh crore which is 10.79 percent more than the net collections for the corresponding period last year.

This collection is 68.7 percent of the total budget estimates of direct taxes for F.Y. 2016-17.

As regards the growth rates for Corporate Income Tax (CIT) and Personal Income Tax (PIT), in terms of gross revenue collections, the growth rate under CIT is 11.7 percent while that under PIT (including STT) is 21.0 percent.

However, after adjusting for refunds, the net growth in CIT collections is 2.9 percent while that in PIT collections is 23.1 percent. Refunds amounting to Rs.1.41 lakh crore have been issued during April 2016-January 2017, which is 41.0 percent higher than the refunds issued during the corresponding period last year.