Higher tax mop-up gives govt Rs 15,000 crore fiscal leeway in Fy18

The more-than-estimated tax mop-up gives the government an additional fiscal leg-room worth Rs 15,000 crore to begin the new financial year, says a report.

The provisional figures of tax collection in 2016-17 has increased by 18 per cent to Rs 17.10 trillion, up from the revised estimate of Rs 16.97 trillion.

"The tax revenue numbers for 2016-17 provide further leeway for 2017-18 fiscal situation also," a report by SBI Research said today.

"Given that government has already exceeded these figures, and if we add the additional disinvestment receipts also, government is beginning 2017-18 with an additional revenue of Rs 15,000 crore," it added.

The report noted that a 33.9 per cent jump in Excise duty collections in the year gone-by was a notable aspect of the tax revenue generated in the year.

Based on the petrol and diesel consumption trends during the first 11 months of 2016-17, the note estimates that Excise duty collected from petroleum products may have registered a 12 per cent growth.

"If this is so, the recent spurt in Excise duty collections is also due to some other components other than petro products and possibly some other reasons," it said, adding the trend is contrary to market perception that oil is the primary lubricator of this jump in Excise duties.

According to the report, the additional components which could have pushed up the Excise duty collections could be cement, automobile (infra cess), iron and steel as well as gems and jewellery (additional excise).

"It is also possible that some of the purchases on these products could have been frontloaded with the use of specified bank notes," the report said.