Revenue realisation growth rate slows down in H1: RBI

MUMBAI: Buoyancy in revenue realization dropped significantly during the first half of current fiscal, mainly on account of poor growth of indirect taxes, a RBI report says.
    
"During April-September 2007-08 revenue receipts at Rs 1,97,956 crore registered an increase of 22.6 per cent, lower than 31.4 per cent recorded during April-September 2006-07," according to RBI analysis of finance of the central government for the first half of this fiscal.
    
The deceleration in the revenue growth rate has been primarily on account of excise duty collection, which fell to 3.4 per cent as compared to 7.4 per cent during the first half of last fiscal.
    
The report further said that "growth in all indirect taxes during the first half of 2007-08 not only decelerated but also recorded growth lower than those envisaged for the full year."
    
All indirect taxes recorded a much lower growth as compared with the corresponding period last year, it said.
    
As regards direct taxes, corporation tax showed a growth of 38.6 per cent during the first half as against 49.2 per cent a year ago, the report said.
    
Income tax realisation, however, increased by 38.2 per cent during the April-September 2007 as against 29.1 per cent during the corresponding period last year.
    
It further said that various other segments of income tax, with an exception of Fringe Benefit Tax, witnessed moderation during the period.