Indirect taxes collections showed high growth in July
Aug 13, 2015: Indirect taxes showed a steady growth in July that is the fourth month running.It is indicating the pace up of economic recovery.
As per the official data presented by the finance ministry, customs duty, and service tax has grown by 39.1% in July. These indirect taxes includes excise duty levied at the factory gate. These levies are the key instrument that represents production, consumption and demand in the Economy.
The economy expanded 7.3% in FY15, while, In January-March quarter, expansion was 7.5%.The Indian government is hoping that this fiscal year 2016 to end with 8% growth.
The First Quarter was not that strong. However, early official data for July is indicating more definite start for the second quarter. The excise collection hiked by 75.4% to Rs 83,454 crore. Service tax revenues rose by 20.1% to Rs. 60,925 crore ,while,customs duty hiked by 21% to Rs.66,076 crore.
The Government data showed that in July, the central excise collections rose by 64.8% to Rs,22,273 crores. Customs duty hiked by 23.2% to Rs.18,996 crore, while, service tax revenues jumped by 30.3% to Rs.15,470 crore.
This quarter start has given a new hope to the nation's economy. However, time will tell that how much growth this fiscal year records.