The Indian Government said in an official release that the indirect tax collection in the country has increased by 38.8 percent in the month of October, 2015, when compared to the same month last year.
Of all the indirect tax collections, Excise collections has registered the highest growth.
The Central Excise collection has increased from Rs 87,588 crore in 2014 to Rs 1, 47,685 crore in 2015, during the period of April – October. Hence, registering a 68.6 growth rate.
Earlier in the beginning of the year, Finance Minister Arun Jaitley has spoken about the increasing indirect tax revenue, even after cutting short various tax generating measures, suggesting a revival in manufacturing.
However, the Financial market analysts pointed out that the majority of the income is generating through Petroleum and Tobacco products, which are not manufactured in India.
As per the estimations, in the 2013-14 financial year the categories of Tobacco and Petroleum accounted for 80% of the total indirect tax revenue collected. On the other hand, the total indirect tax collected through these summed up to 79% in the current fiscal.
It has been reported that the Government is aiming to increase the revenue collected from Excise duty levied against Tobacco and Petroleum products to 82% by levying additional taxes.
However, Market analysts say that the Government’s indirect tax revenue collection will still remain healthy even without an increase in the Excise duty levied, the Hindu reported.