New Delhi, January 9: The Finance Minister Arun Jaitley on Monday said that the collection of both direct and indirect taxes have increased in April-November 2016 despite the notes ban in the country.
"Those reports and figures (saying tax collection would go down) were all panic numbers, the numbers I'm giving you are real. Even economic affairs secretary kept saying there was no need to panic," Jaitley said.
Jaitley said that for April-November 2016, the overall direct tax collection is 12.01 percent higher as compared to 2015. Meanwhile, the overall collection of indirect taxes has gone up by 25% in April-November 2016.
Jaitley mentioned that of the total tax collected in April-November 2016, the central excise tax collection is up by 43%. Also, the service tax collection is raised by 23.9% along with the duty tax collection which is raised by 4.1%. It is notable that all these increases are from taxes collected in the year ago time period.
As per the preliminary data for December 2016, total indirect tax collection rose 14.2 percent in December 2016 as compared to a year ago. This, despite the demonetisation decision announced by Modi government on November 8 under which old currency of Rs 500 and Rs 1,000 was scrapped.
Compared to December 2015, the customs duty tax has declined to -6.3% primarily because of the fall in the gold imports, Jaitley announced. For December 2016 central excise tax collection though rose 31.6 percent from December 2016. Service tax collected in December 2016 rose to 12.4% as compared to December 2015.
"In November, it was being suggested that the demonetisation impact would be more in December, but even indirect tax collection rose," the minister said. He mentioned that VAT collection from states also increased in November 2016.
"Another thing to remember, the collection estimate for November 2016 - when taxes could be paid in old currency - indicates that VAT must have been paid in old currency. So VAT collection is also up post demonetisation," Jaitley said.