Friday, 12 June 2015

A COMMENT ON THE FINANCE MINISTERS REMARK ON INDIRECT TAX REVENUE.

This is a comment on the Finance Ministers remark on Indirect Tax Collection. Press release dated 12/06/2015 quoted in the end.

Indirect Taxes are not collected directly by the department. It is the voluntary payment of public through the shopkeepers etc. like sales tax, excise duty etc. If the Finance Minister really reviewed the performance, he should ask the department how much the departments directly collected. Actually, what he should have done is how much collection is directly related to the efforts of the department such as how much evaded tax was brought to book (actual, not bogus collections refunded later). If there is no considerable collection, he should then ask them what they are in the department. For example the increase in collection what he pointed out is mainly due to the increase of tax in petroleum products for which the tax money is paid by the public when they purchase it from the petrol pump. It is really a great wonder/joke of the WORLD when the actual price of the petroleum products are decreased internationally, tax collection is more by increasing the tax rate arbitrarily and taking credit for it. Really wonderful.


"INDIRECT TAX REVENUE (PROVISIONAL) COLLECTIONS INCREASE FROM RS. 36,408 CRORE IN MAY 2014 TO RS. 49,993 CRORE DURING MAY 2015; AN INCREASE OF 37.3 % REGISTERED DURING THE MONTH OF MAY 2015 OVER THE CORRESPONDING PERIOD IN THE PREVIOUS YEAR; CENTRAL EXCISE COLLECTIONS REGISTERED AN INCREASE OF 84.2%; CUSTOMS COLLECTIONS REGISTERED AN INCREASE OF 16% WHILE SERVICE TAX COLLECTIONS REGISTERED AN INCREASE OF 13.2% DURING THE SAME PERIOD; FM: THE UNDERLYING MOMENTUM IN THE ECONOMY IS IMPROVING ACROSS ALL SECTORS INCLUDING MANUFACTURING AS REFLECTED IN HEALTHY EXCISE COLLECTIONS DURING THE FIRST TWO MONTHS OF THE CURRENT FINANCIAL YEAR 2015-16. 

Responding to the indirect tax collection figures, the Union Finance Minister Shri Arun Jaitley said that the these indirect tax collections reflect in part the effect of the additional measures taken by the Central Government including the Central Excise increase on diesel and petrol, increase in clean energy cess, and the withdrawal of exemptions for motor vehicles and consumer durables. He said that even after taking-out the impact of these additional measures, indirect tax collections have shown an increase of 16.9% in May 2015 over May 2014; and by 12.6% for the two month period April-May 2015 over the same period last year i.e. April- May 2014. 

The Union Finance Minister Shri Arun Jaitley further said that the underlying momentum in the economy is improving across all sectors including manufacturing as reflected in healthy Excise collections during the first two months of the Current Financial Year 2015-16". 
For full text of the report, go to link:
http://www.finmin.nic.in/press_room/2015/IndirectTaxCollectionsforMay2015.pdf

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centralemployeesnews.manjaly.net
cagreport.manjaly.net
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https://www.facebook.com/afraudintheindianconstitution?ref=aymt_homepage_panel
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