The Centre’s tax collections grew 18% during the financial year 2016-17 to Rs 17.10 lakh crore, following robust mop up from excise and income tax, the finance ministry said on Tuesday.
The robust revenue collections raises hopes for the government to rein in the fiscal deficit within 3.5% of GDP in 2016-17.
“Indirect tax collections (central excise, service tax and customs) of Rs 8.63 lakh crore in FY 2016-17 is about 101.35% achievement of RE 2016-17,” the finance ministry said.
In his Budget for 2017-18, finance minister Arun Jaitley had revised the tax target to Rs 16.97 lakh crore from Rs 16.25 lakh crore budgeted in 2016.
“As against the revised estimate, the provisional figure of tax collection is Rs 17.10 lakh crore, which is a growth of around 18% compared to last year,” the ministry said.
Direct tax collections grew 14.2% to Rs 8.47 lakh crore, which is dot on budget target with corporate tax collections grew 13.1% while income tax was up 18.4%.
Indirect tax collections were up 22% at Rs 8.63 lakh crore during 2016-17, which was 101.35% of the revised estimates made in the budget.
Central excise collections grew 33.9% to Rs 3.83 lakh crore during 2016-17, while service tax mop up were 20.2% at Rs. 2.54 lakh crore and customs grew 7.4% to Rs 2.26 lakh crore.