Data released today shows Indirect Tax collections at INR 330.45 B could have been up 22% over April 2011 except for the reductions in Excise on Petroleum products in July 2011. The Service tax collections have risen robustly by nearly 33% after the increase in rate with the April 2012 colections at INR 88B or INR 8,846 Crs. The 2012-13 Fisc target for Indirect tax collections is INR 5.05 T ( INR 5.05 lakh crores)
India ended FY2012 with Indirect Tax collections of INR 3.92T on target with B.E. though the rise in Service tax collections was not matched by rcustoms and Excise collections.
Customs collections for April slowed to INR 115.94 B but the increase in excise and Service tax rates yielded the net growth of 17% in Excise to INR 126.05B. The political impasse in passing along prices of Petroleum pdts to consumers continues to bind the government to a weak and growing Fiscal deficit and the Current Account Deficit even as import prices decrease is balanced by a fdrop in the value of the Rupee