The latest tax revenue numbers up to 31st January, 2016 (31.01.2016) indicate healthy growth of 33.7% in Indirect Tax and 10.9% in Direct Tax collections. As against the Annual BE target for tax collections of ₹ 14.49 lakh crore, the Government has received ₹ 10.66 lakh crore, which is, 73.5% of the BE target. Looking to the trend, it appears that as far as Indirect Tax collections are concerned, the Government may get more than ₹ 40,000 crore extra over and above the BE target for Indirect Taxes for 2015-16 while there might be an equal amount of shortfall in Direct Tax collections. However, both Direct and Indirect Tax collections put together, we expect to meet the annual BE target of Revenue collections for the current year without any shortfall.

Growth in Custom Duty revenue collections - on electrical machinery is 34.4%, in case of other machineries it is 27.8%. These are indicators of new investment taking place in private sector. As far as the growth in Services tax collections are concerned, as against 27.2% average growth rate, the growth rate in banking and financial services is 44.6%. In case of work contract services, growth rate in Service taxes is 39.9% and in case of goods transportation services, it is 41%. These are also indications of high level of economic activities taking place in the economy and seems to be in commensurate with the growth rate projections for the FY 2015-16 as announced by the Central Statistical Organisation (CSO) two days back.  

Tax revenue growth led by indirect taxes may offset direct tax shortfalls, keeping the annual revenue target achievable. Combined direct and indirect tax receipts through 31 January 2016 display divergent growth-robust indirect tax gains and modest direct tax increases-but projected indirect tax surpluses may offset direct tax shortfalls so that aggregated revenue is expected to meet the annual BE target for 2015-16.