Tax collection to exceed Budget estimate in 2016-17: Arun Jaitley
| Updated On: 2017-01-05 05:45:04.0 | Location :
Jaitley emphasized that the decision to advance the Budget presentation date to February 1 stands the same despite objections.
Amidst the ongoing drama over the budget presentation and upcoming elections, Finance Minister Arun Jaitley has claimed that the Centre is hopeful of exceeding its Budget Estimates (BE) for 2016-17 in both direct and indirect tax collections.
“We will end this year with higher revenues for both direct and indirect taxes compared to the estimates,” said Finance Minister Arun Jaitley after the Goods and Services Tax Council meeting and pre-Budget consultation with state counterparts.
Furthermore, he emphasized that the decision to advance the Budget presentation date to February 1 stands the same despite objections.
This comes when the states raised concern over declining revenues and sought relaxation in the Fiscal Responsibility and Budget Management (FRBM) limit, besides central support to revive labour-intensive industries.
According to the reports, Indirect tax collections — central excise, service tax, customs — were up 26.2 per cent in the April-November period (first eight months of this financial year) at Rs 5.52 lakh crore, as against the full year’s target of 10.8 per cent.
Excise duty collections rose 43.5 per cent in the first eight months (April-November) of 2016-17 to Rs 2.43 lakh crore, against the BE of 12.15 per cent rise. Service tax collections made the kitty richer by 25.7 per cent at Rs 1.6 lakh crore in the eight months, against the 10 per cent projected in the BE.
Customs collections rose by 5.6 per cent at Rs 1.48 lakh crore in the first eight months; the BE had projected 9.78 per cent more in FY17.
Till December 19, the net increase in direct taxes was 13.6 per cent after factoring in the refunds, already higher than the Budget target of 12.5 per cent. Growth in corporate tax collection was 8.75 per cent till December 19, against the BE’s 9.04 per cent for the full year. Personal income tax yielded 23.9 per cent more till December 19, against a BE rise of 18.1 per cent.
About situations following demonetisation, Jaitley said that the Reserve Bank (RBI) would remove the current restrictions on cash withdrawal after assessing the situation. He ruled out a change in the conditions barring anyone other than non-resident Indians (NRIs) and those returning from abroad from depositing the junked notes in select central bank branches.