Source: News Bharati English10 Mar 2017 16:01:17
New Delhi, February 10: The positive effect of demonetization has been constantly seen as it has helped to attain a growth rate in Direct Taxes and indirect taxes. The Finance Ministry on Friday announced in a series of the tweet that there has been a healthy growth in Direct Taxes of 10.7% and Indirect taxes of 22.2% during the month of February 2017 over the corresponding period last year.
During February 2017, the Net Indirect Tax grew at the rate of 22.2% compared to the corresponding month last year. The growth rate in a net collection of Customs, Central Excise and Service Tax was 10.9%, 7.4% and 7.6% respectively during the month of February 2017, compared to the corresponding month last year.
The figures for indirect tax collections (Central Excise, Service Tax and Customs) up to February 2017 show that net revenue collections are at Rs 7.03 lakh crore, which is 23.9% more than the net collections for the corresponding period last year. Till January 2017, about 82.8% of the Revised Estimates (RE) of indirect taxes for Financial Year 2016-17 has been achieved.
As regards Central Excise, net tax collections stood at Rs. 3.45 lakh crore during April-February, 2016-17 as compared to Rs.2.53 lakh crore during the corresponding period in the previous Financial Year, thereby registering a growth of 36.2%.
Net Tax collections on account of Service Tax during April-February, 2016-17 stood at Rs. 2.21 lakh crore as compared to Rs.1.83 lakh crore during the corresponding period in the previous Financial Year, thereby registering a growth of 20.8%.
Net Tax collections on account of Customs during April-February 2016-17 stood at Rs. 2.05 lakh crore as compared to Rs. 1.94 lakh crore during the same period in the previous Financial Year, thereby registering a growth of 5.2%.
The figures for Direct Tax collections up to February 2017 show that net collections are at Rs. 6.17 lakh crore which is 10.7% more than the net collections for the corresponding period last year. This collection is 72.9% 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 11.9% while that under PIT (including STT) is 20.8%. However, after adjusting for refunds, the net growth in CIT collections is 2.6% while that in PIT collections is 19.5%. Refunds amounting to Rs.1.48 lakh crore have been issued during April 2016-February 2017, which is 40.2% higher than the refunds issued during the corresponding period last year.
Notably, the 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 had been observed due to demonetization.