New Delhi: Growth in collection of indirect taxes in the first half of the current fiscal shows robust GDP expansion, Chief Economic Advisor Arvind Subramanian has said. “Indirect tax growth: 35.8 per cent. And 11.5 per cent without new measures. Latter shows tax base-nominal GDP-growth robust,” Subramanian tweeted.
Indirect tax collection increased 35.8 per cent in the April-September period of the 2015-16 fiscal to Rs 3.24 lakh crore, hitting more than 50 per cent of the annual target. The collection also reflects hike in excise duty on diesel and petrol, withdrawal of tax exemptions for motor vehicles, increase in clean energy cess and hike in service tax rate in June.
The government has budgeted to collect over Rs 6.47 lakh crore from indirect taxes in the current fiscal, a growth of 18.8 per cent over last fiscal.