Reflecting an increase in economic activity, indirect tax collection increased 35.8 per cent in the first six months of the current fiscal to 3.24 lakh crore rupees, hitting more than 50 per cent of the annual target. The indirect tax that includes Central Excise, Customs and Service Tax — collection during April-September of the last financial year was 2.38 lakh crore rupees. In a statement, Finance Ministry said this is an achievement of 50.6 per cent of the target fixed for 2015-16 Budget Estimate.
The maximum jump was seen in the excise duty collection at 69.6 per cent, or 1,25,530 crore rupees. Increase in excise duty reflect pick up in industrial activities. Customs duty collection increased by 17.5 per cent while Service Tax mop up increased by 24.3 per cent.
The government has budgeted to collect over 6.47 lakh crore rupees from indirect taxes in the current fiscal, a growth of 18.8 per cent over last fiscal.