India’s indirect tax collections have increased by 36 percent to Rs. 3.83 lakh crore during April-October 2015 compared to April-October 2014 on the back of a spurt in economic activity, excise duty hikes and an increase in service tax rates. The target growth rate for 2015-16 is 18.8 percent.
These collections reflect in part increase due to additional measures taken by the government from time to time, including the excise increases on diesel and petrol, the increase in clean energy cess, the withdrawal of exemptions for motor vehicles, capital goods and consumer durables, and the increase in service tax rates from 12.36 percent to 14 percent from June 2015.
Stripped of all these additional measures, indirect tax collections increased by 11.6 percent compared with last year, the Finance Ministry said in a statement. In October 2015, indirect tax revenue collections grew by 36.8 percent from a year earlier.
The material has been provided by InstaForex Company – www.instaforex.com