Tax collection exceeds target as government collects Rs 17.1 lakh crore in FY17

The revenue department has exceeded its revised tax collections for both direct and indirect tax target for 2016-17 by about 18 per cent at Rs 17.1 lakh crore against the Budget Estimate of 16.97 lakh crore. In terms of gross revenue collections, the growth rate in corporate tax stood at 13.1 per cent while that of personal income tax was 18.4 per cent. After adjusting for refunds, the net growth in corporate tax collections stood at 6.7 per cent while growth in personal tax collections stood at 21 per cent.

Refunds of Rs 1.62 lakh crore were issued during April 2016-March 2017, which is 32.6 per cent higher than the refunds issued during 2015-16, according to an official statement from the finance ministry.

Direct tax collections up to March 2017 stood at Rs 8.47 lakh crore, which is 14.2 per cent more than the net collections for the corresponding period last year. Direct tax collections show 100 per cent achievement for 2016-17, states a note for the finance ministry. Indirect tax collections (central excise, service tax and customs) in 2016-17 were at Rs 8.63 lakh crore, which is 22 per cent higher than the actual revenue receipts in 2015-16. Till March 2017, 101.35 per cent of the revised estimates of indirect taxes for 2016-17 has been achieved.

Net tax collection from the central excise registered a growth of 33.9 per cent at Rs 3.83 lakh crore during 2016-17 compared to Rs 2.86 lakh crore in the previous financial year.

Service tax collection during 2016-17 grew 20.2 per cent at Rs 2.54 lakh crore compared to Rs 2.11 lakh crore in the previous financial year. Tax collection from customs during 2016-17 grew 7.4 per cent at Rs 2.26 lakh crore compared to Rs 2.10 lakh crore in the previous financial year, according to the finance ministry statement.

By : Express news service 5/4/2017