Even as the indirect tax collection is set to hit the Budget target, the Finance Ministry may not be able to achieve the target for total tax revenue during the fiscal year ending March 31, 2012. The gross tax revenue target has been set at Rs 9.32 lakh crore.
In another bit of bad news, excise duty collection in January has once again turned negative. Excise duty is levied at the factory gate on goods produced. Negative collection indicates that manufacturing is down and demand has also been affected.
TARGET ACHIEVABLE
According to the Finance Ministry, total tax collections touched Rs 7.42-lakh crore, nearly 14 per cent higher than the corresponding previous figure of Rs 6.46-lakh crore.
To achieve the Budget target, it aimed at a growth of 18.5 per cent.
The Central Board of Indirect Taxes, while releasing the data of indirect taxes, said: “Nearly 80.74 per cent of the Budget estimate has been achieved up to January 2012 in the current fiscal year.
At the present rate of growth, the Board should be able to achieve the target of Rs 3.92 lakh crores.”
Positive trend
The overall growth in Central excise revenue up to January is showing a positive trend. Service tax revenue also continues to be buoyant and is growing by over 34 per cent, while Customs duty growth is around 13 per cent.
But the real problem is with direct taxes, as the net collection has grown by just over 9 per cent. The CBDT has clearly said that the Rs 5.32-lakh-crore target is ‘non-negotiable.'
It wants its officials to take up the challenge of filling the deficit. With some revision during the middle of the year, the total tax target was revised upwards. “However, direct tax collection may fall short, which will affect overall tax collection,” a senior Finance Ministry official said. He, however, refused to give the quantum of shortfall.
Under direct taxes, the collection of Securities Transaction Tax has declined by over 27 per cent. But with per capita income on the rise, personal income-tax is also going up.
INCOME-TAX
One of the The data show that gross collection of income-tax grew by over 20 per cent and reached Rs 1.38 lakh crore.
Initially, the Finance Ministry had set a target of over Rs 1.58 lakh crore from personal income-tax.
Growth in gross corporate tax collection, too, may fall short of the target. It has reached just 12 per cent, to touch Rs 2.85 lakh crore, against the initial target of Rs 3.33 lakh crore.