Indirect tax collections beat govt estimate in FY11

The Centres receipts from indirect taxes has overshot its revised estimate of Rs 3,34,500 crore for 2010-11 to touch Rs 3,40,070 crore.

The Centres receipts from indirect taxes has overshot its revised estimate of Rs 3,34,500 crore for 2010-11 to touch Rs 3,40,070 crore. However,these are only provisional figures and the finance ministry is confident that the actual collections would be higher by around Rs 12,000 crore,sources told The Indian Express.

Excise duty collections stood at Rs 1,37,500 crore during the year while service tax collections stood at Rs 70,200 crore. The finance ministry raked in Rs 1,32,370 crore through customs duty,the sources said adding the figure is expected to go up.

Buoyed by the robust economic growth,the department had upped the revenue mop-up target by 7 per cent to Rs 3.36 lakh crore for the fiscal,from the Budget target of Rs 3.15 lakh crore.

It had also raised the target for excise collection,pegging it at Rs 1.33 lakh crore,31.2 per cent more than last year. The increase in indirect tax collection during the current fiscal can partly be attributed to partial withdrawal of economic stimulus measures in the last Budget. In the Budget 2010-11,finance minister Pranab Mukherjee raised excise duty by 2 per cent to 10 per cent as part of a plan to gradually withdraw the incentives given to industry to cushion the impact of the global financial meltdown.