Tax Collections Up in India
September 11, 2012 Taxation in India
NEW DELHI – India has seen an increase in tax collections over the course of the current fiscal year, but the rise is less than half of the government’s projected growth rate for this year.
Tax collections in India over the months between April and August grew by 6.51 percent compared to the same period last year, according to a new statement released by the Ministry of Finance of India on September 10th.
Over the first five months of the 2012 – 2013 fiscal year the government of India saw cumulative tax collections reach INR 1.64 trillion, while during the same period in the previous year the total reached INR 1.54 trillion.
Collections of personal income tax grew by 17.09 percent between April and August, reaching INR 674.2 billion, compared to a total of INR 575.8 billion over period in 2011.
Despite the increases in the overall level of collections the rate of growth was still below the government’s tax growth target of 15 percent.
The lower than expected result were attributed primarily to a slow down in business activity in India and a reduction in the collections of corporate income tax, which only rose by 0.15 percent over the five months.
Collections of securities transactions tax also fared poorly, with collections of the tax falling by 14.94 percent over the course of the current fiscal year.