Demonetisation: FM Jaitley dismisses slowdown concerns, says higher tax mop up indicates uptick in economic activity

Finance Minister Arun Jaitley on Monday said that the indirect and direct tax collections between April and December this year increased by 25 percent and 12.01 percent respectively compared to the same period last year.

Demonetisation: FM Jaitley dismisses slowdown concerns, says higher tax mop up indicates uptick in economic activity
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New Delhi: Dismissing concerns of slowdown due to demonetisation, Finance Minister Arun Jaitley on Monday said that the indirect and direct tax collections between April and December this year increased by 25 percent and 12.01 percent respectively compared to the same period last year.

FM further said that the demonetised notes had no role to play in the tax collections for December as people were allowed to pay taxes in the spiked currency only in November.

Last November, Prime Minister Narendra Modi had scrapped 500- and 1,000-rupee bank notes as part of a crackdown on tax dodgers and counterfeiters, leaving companies, farmers and households all in pain.

"The figures for direct tax collections up to December, 2016 show that net collections were at Rs. 5.53 lakh crore which is 12.01 percent more than the net collections for the corresponding period last year. The figures for indirect tax collections (central excise, service tax and customs) up to December 2016 show that net revenue collections were at Rs 6.30 lakh crore, which is 25 percent more than the net collections for the corresponding period last year," Jaitley said.

 

Key highlights of Jaitley's statement:

 

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%.

Compared to November 2016, the growth of Indirect tax in December 2016 is 12.8%.

Direct taxes for the first 3 quarters has moved up, indirect taxes significantly moved up.

For most States VAT collections have increased.