Indirect tax collection surged by 37.3 per cent in May, while the collections during the first two months (April-May) of the current financial year increased to Rs 96,128 crore, from Rs 69,069 crore during the same period in 2014-15, up by 39.2 per cent. Finance Minister Arun Jaitley said that the collection of indirect taxes in all three categories - customs, central excise and service tax - has shown rising trend in the current financial year, 2015-16.
Jaitley further added that the increase in excise collection was reflective of pick up in manufacturing sector and that the 16.9 percent growth in indirect taxes after excluding the revenue generated from additional excise duties levied this fiscal, “is a fairly healthy growth”.
Though, the absolute numbers of tax collections were not shared but the sharp surge in April was largely due to a 100-plus per cent rise in excise duty collection, fuelled mainly by the increase in rates on petroleum. And, the good indirect collections for May was on account of the additional cess on diesel and petrol, as well as the clean energy cess.
Jaitley added that even if the impact of this additional sector is excluded, in May the increase would be 16.9 per cent and cumulatively the increase would be 12.6 per cent for the two months.