Jaitley: Tax collection significantly up last year

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New Delhi, January 9: Finance Minister Arun Jaitley addressed a press conference in Delhi today. He revealed tax collection data economy in the last three quarters of Financial Year 2016-17.

In the last few days, Modi government has claimed that impact of demonetisation on Indian economy is not as rigorous as highlighted by opposition parties and India still eyes GDP growth at 7.1 % in the coming fiscal. However, experts have claimed that such estimates could be erroneous as the data doesn’t include 50 days of demonetisation.

Read More: CSO pegged erroneous 7.1% GDP estimates, experts

Besides highlighted benefits of note ban, FM had also said tax collection has increased till November 30. He was criticised for sharing distorted image as FM did not factor in economic disruptions since November 8, 2016.

Read More:  Why Arun Jaitley’s economic assessment is unreal

From past 60 days, unprecedented demonetisation decision of PM Modi has caused consistent cash crunch and disruptions in Indian Supply chain, affecting manufacturing as well as consumption in the economy.

Highlights of Speech

  • Citing deadlock between banks and Petrol Pump association, Jaitley said we’re discussing the issue and have asked Secretary DEA to discuss the issue with banks. Petroleum Ministry is also in touch with FM on petrol pump transaction fee.
  • While some states, including Delhi claimed that collection of VAT has significantly declined due to demonetisation and struggling SMEs, Jaitley said today that, for most States VAT collections have increased.
  • He further said, direct taxes for the first 3 quarters has moved up, while indirect taxes significantly moved up.
  • Compared to November 2016, the growth of Indirect Tax in December 2016 is 12.8%, he added.
  • From April to Decemeber 2016, the increase in direct tax is 12.01% and indirect tax is 25 %, compared to last year.
  • Central Excise increased 31.6% in December 2016 as compared to December 2015.
  • In December 2016 compared to last December, the customs has actually declined, it is – 6.3%
  • Overall increase in indirect taxes for the month of April to Dec ’16 compared to same figures last year is 25%: FM Arun Jaitley

Read More: GST deadlock continues; Demonetisation hit states, industry need more time

Read More: Demonetisation dried investments in India by 50 percent

Wefornews Bureau

 

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