Government Hits Indirect Tax Targets, Falls Short on Health Cess

The government narrowly exceeded its indirect tax collection target for FY26, collecting over Rs 15.52 lakh crore, driven by customs, excise, and GST revenues. However, collections from the health and national security cess fell short, achieving only 63% of the Revised Estimates.

The government has slightly surpassed its indirect tax collection goals for the fiscal year 2025-26, as confirmed by an official on Thursday. The revised estimate had set a target of over Rs 15.52 lakh crore, combining customs, excise, and GST collections.

Customs duty revenues reached 102% of the revised estimates, while excise duty and Central GST collections came in at 101% and 100.8%, respectively, of the targets set. Overall, both GST and non-GST collections reached 101.2% of the revised estimates.

Nevertheless, the health and national security cess, applied to pan masala manufacturing, underperformed. Expected to gather Rs 2,330 crore, it only achieved 63% of the target. Officials hope for better results in the current fiscal with a projected Rs 14,000 crore revenue from the cess.

(With inputs from agencies.)