Business IdeasRs 18,000 cr tax collections signal recovery in industry: CBEC
The Finance Ministry today said that customs duty collections at about Rs 18,000 crore in the first quarter of this fiscal and initial reports on steel and cement sectors point to a recovery in industry that would also benefit from tax cuts announced as part of stimulus packages.
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Customs collections are six per cent higher during April-June this year over the previous quarter, mainly on account of higher imports of raw materials and capital goods, Central Board of Excise and Customs Chairman P C Jha said.
"Our customs collections for the first quarter of (the) current fiscal are at Rs 17,858 crore. In the January-March period, the collections were at Rs 16,766 crore," he elaborated.
Stating that collections are higher on account of improved imports of raw materials and capital goods, Jha said, this certainly would lead to improvement in manufacturing sector, though the results would be seen 2-3 months later.
"This is a signal that the manufacturing sector will also improve. In imports, major components are raw materials and capital goods that means in future, (the) manufacturing sector will improve," he added.
Tax cuts in three stimulus packages announced since December last year had a consequential effect of Rs 52,000 crore, Jha said.
"Last year 14 per cent excise continued till December. This year eight per cent duty is from the beginning. Even at this rate the collection will be higher."