Government Exceeds Tax Collection Target, Mops Up Rs 17.10 Lakh Cr

With its 2016-17 collection, the government registered the highest growth in the past six years.

The government has marginally exceeded the tax collection target for 2016-17 by mopping up Rs 17.10 lakh crore, registering the highest growth in the past six years.

This translates into a growth of 18 percent compared to the previous year as excise, service tax and personal income tax collection showed buoyancy.

Also, it came in higher than the Rs 16.97 lakh crore as pegged in the revised estimates (RE) of the Budget on 1 February, a finance ministry statement said on Tuesday.

Revenue Secretary Hasmukh Adhia tweeted:

While the direct tax mop-up during April-March grew 14.2 percent at Rs 8.47 lakh crore, the indirect tax kitty swelled by 22 percent over the last year to Rs 8.63 lakh crore.

The net direct tax mobilisation is 100 percent of the amount pegged in RE.

Pradhan Mantri Garib Kalyan Yojna and IDS Also Revenue Generators

The figure also includes the revenue garnered through Pradhan Mantri Garib Kalyan Yojana (PMGKY) as well as the second payment installment of income declaration scheme (IDS).

The second payment instalment ended on 31 March. A total of Rs 67,382 crore worth illicit wealth was disclosed in the one-time window last year and first installment was paid in November.

Post demonetisation, the government had come out with PMGKY under which people with unaccounted cash could come clean by paying 50 percent tax plus penalty. A quarter of the total sum will have to be parked in a non-interest bearing deposit for four years. The scheme opened on 1 December and closed on 31 March.

The statement said indirect tax collection of Rs 8.63 lakh crore is 101.35 percent of the RE for 2016-17. The RE was pegged at Rs 8.5 lakh crore.

In terms of gross revenue collections, the growth rate in corporate tax was 13.1 percent while that of personal income tax was 18.4 percent.

However, after adjusting for refunds, the net growth in corporate tax collections is 6.7 percent while that of personal I-T collections is 21 percent.

Refunds amounting to Rs 1.62 lakh crore were issued during April 2016 and March 2017, 32.6 percent higher than 2015-16, the statement added.

As for indirect taxes, central excise collections grew 33.9 percent to Rs 3.83 lakh crore during 2016-17.

Service tax mop-up rose 20.2 percent to Rs 2.54 lakh crore while Customs mobilisation grew 7.4 percent to Rs 2.26 lakh crore.

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