Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  Govt confident of meeting tax targets
BackBack

Govt confident of meeting tax targets

Revenue secretary Hasmukh Adhia says indirect tax collections are likely to exceed the budgeted targets by more than Rs40,000 crore

Photo: iStockPremium
Photo: iStock

New Delhi: With indirect collections rising on the back of higher excise duties on petroleum products, the government is confident of meeting its overall tax collection targets for 2015-16 despite a shortfall in direct tax collection.

Revenue secretary Hasmukh Adhia said in a video statement on Wednesday that indirect tax collections are likely to exceed the budgeted targets by more than 40,000 crore. But a shortfall in direct tax collections is likely to compensate the increase in indirect tax revenue.

As of 31 January, total direct tax collections stood at 5.22 trillion (65% of the budget estimate) while indirect tax collections amounted to 5.44 trillion (88% of the budget estimate). “We are confident of achieving the total tax revenue collection target of 14.49 trillion," Adhia said.

Capitalizing on the fall in global crude prices, the government has increased the excise duty on petroleum products many times since late 2014, including three times in the last month itself.

Adhia said that sector-specific trends visible from the customs and service sector data are signalling a revival in economic activity in the country.

Growth in customs duty revenue from electrical machinery is 34.4% and in other machinery is 27.8%, reflecting improved levels of private investment, he said.

In services tax, growth in tax revenue from banking and financial services was highest at 44%, followed by goods transportation services at 41% and works contract at 40%, he added.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 10 Feb 2016, 02:14 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App