There was a 25% rise in indirect taxes, with a collection of Rs 6.30 lakh crore between April 2016 and December 2016 as compared to the same period in 2015, Finance Minister Arun Jaitley said on Monday. Direct taxes collections rose by 12.01% to Rs 5.53 lakh crore in the same period, he said, adding that value-added tax collections, too, had increased in most states.
His statements follow criticism that the Centre’s demonetisation drive had negatively affected the economy. Jaitley said central excise collections rose by 31.6% in December 2016 as compared to the corresponding month last year. Revenue collections from corporate income tax had gained by 10.7%, while personal income tax collections rose by 21.7%, the finance minister added.
On January 8, Jaitley had said that demonetisation would act against the “shadow economy and black money”. The Centre has faced strong criticism because of the cash crunch in the country since the currency ban. Many rural areas continue to face an acute shortage of cash, even two months after the decision was announced.