NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / Indirect tax collection surpasses Rs.7.04 lakh crores
    Next Article
    Indirect tax collection surpasses  Rs.7.04 lakh crores

    Indirect tax collection surpasses Rs.7.04 lakh crores

    By Achin Garg
    Apr 03, 2016
    01:31 pm

    What's the story

    According to Najib Shah, Chairman Central Board of Excise and Customs, the total indirect tax collection has surpassed even the revised estimate of Rs.7.04 lakh crores.

    The finance minister during budget 2015-16 had kept a target of Rs.6.48 lakh crores for indirect taxes in FY2015-16.

    The target was revised by the finance minister in Feb'2016 to Rs.7.04 lakh crores owing to better collections.

    Indirect Taxes

    What are indirect taxes?

    Indirect taxes are taxes collected by the government from intermediaries such as manufacturers and retailers, but the eventual burden falls on the consumers who consume goods and services.

    Examples of indirect taxes in India include sales tax, VAT, excise duties, etc.

    Unlike direct tax (such as income tax, wealth tax, etc.) which is levied on individuals, indirect tax is levied on goods and services.

    Personal

    GST: a type of indirect tax

    The Goods and Service Tax (GST), which is stated to be India's biggest indirect tax reform since independence, is a type of indirect tax which will subsume all other indirect taxes to simplify complexities in indirect taxation.

    Reasons

    Reasons for higher indirect tax collection

    The increase in the excise duty on petroleum products is the single major reason for greater collection of excise duties, which forms a major part of indirect taxes.

    The government had not passed the entire benefit of decline in crude oil prices to the consumers but increased excise duties.

    Consequently, the FY2015-16 excise duties collection was revised from Rs.2.3 to Rs.2.84 lakh crore.

    Implications

    Why is higher indirect tax collection helpful?

    Greater taxes increase government's income allowing it to spend more on developmental causes.

    A greater indirect tax collection will help in making up for the subdued direct tax collection for the financial year 2015-16.

    Further, it provides additional cushion to the finance minister to adhere to its fiscal deficit (total expenditure less total income) target of 3.9% for the financial year 2015-16.

    Information

    Rs.7.8 lakh crores target set for FY2016-17

    For the next fiscal year 2016-17, the finance minister has increased the indirect tax collection estimates by 10.8% over Rs.7.04 lakh crore to Rs.7.8 lakh crores.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest

    Latest

    China trying to lure US-based Chinese researchers with attractive salaries China
    Indian defense stocks witness ₹1.2L crore surge amid Operation Sindoor India
    'Nothing...decided': Jaishankar after Trump claims India offered '0-tariff' deal    Donald Trump
    Google says hackers targeting UK retailers now eyeing US stores Google
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025