New Delhi, January 9: The Demonetisation has helped to attain a growth rate in Direct Taxes and indirect taxes. The Finance Ministry has announced that there has been an enormous growth in Direct taxes of 12.01% and Indirect taxes of 25% during the period of April 2016 to December 2016 over the corresponding period last year.
Finance Minister Arun Jaitley held a Press conference on Monday and revealed the details of the collection of both the taxes. He stated, for April-November 2016, overall direct tax collection is 12.01 percent higher than in the same period in 2015. Overall collection of indirect taxes is up as much as 25% in April-November 2016, from the comparable year-ago period.
The Direct Tax collections up to December, 2016 show that net collections are at Rs. 5.53 lakh crore which is 12.01% more than the net collections for the corresponding period last year. This collection is 65.3% of the total Budget Estimates of Direct Taxes for F.Y. 2016-17.
As regards the growth rates for Corporate Income Tax (CIT) and Personal Income Tax (PIT), in terms of gross revenue collections, the growth rate under CIT is 10.7% while that under PIT is 21.7%. However, after adjusting for refunds, the net growth in CIT collections is 4.4% while that in PIT collections is 24.6%. Refunds amounting to Rs.1,26,371 crore have been issued during April-December, 2016, which is 30.5% higher than the refunds issued during the corresponding period last year.
After accounting for the third installment of advance tax received in December 2016, the collections under advance tax stand at Rs.2.82 lakh crore, which is 14.4% higher than the figures for the corresponding period of last year. CIT advance tax is growing at 10.6% while PIT advance tax has registered a growth of 38.2%.
Indirect tax collections including Central Excise, Service Tax, and Customs up to December 2016 show that net revenue collections are at Rs 6.30 lakh crore, which is 25% more than the net collections for the corresponding period last year. Till December 2016, about 81% of the Budget Estimates of indirect taxes for Financial Year 2016-17 has been achieved.
Central Excise- Net tax collections stood at Rs. 2.79 lakh crore during April-December, 2016 as compared to Rs.1.95 lakh crore during the corresponding period in the previous Financial Year, thereby registering a growth of 43%.
Service Tax- Net Tax collections on account of Service Tax during April-December, 2016 stood at Rs. 1.83 lakh crore as compared to Rs.1.48 lakh crore during the corresponding period in the previous Financial Year, thereby registering a growth of 23.9%.
Customs Tax- Net Tax collections on account of Customs during April-December 2016 stood at Rs. 1.67 lakh crore as compared to Rs. 1.60 lakh crore during the same period in the previous Financial Year, thereby registering a growth of 4.1%.
During December 2016, the net indirect tax (with ARM) grew at the rate of 14.2% compared to the corresponding month last year. The growth rate in the net collection for Customs, Central Excise, and Service Tax was -6.3%, 31.6% and 12.4% respectively during the month of December 2016, compared to the corresponding month last year. The de-growth in customs collections appear to be on account of a decline in gold imports by about 46% in December 2016 over December 2015.
Arun Jaitley after releasing all the facts and figures of the taxes collection said that almost all states reported higher VAT collection in the last three-quarters. Jaitley further said that the decision of demonetisation was taken after keeping an eye on each and every perspective. The government earlier while taking such bold decision said everything is under control and no need of panicking. Jaitley also attacked the opposition for criticising the centre's demonetisation move.