The spotlight is currently on the decline in income tax collections and falling direct tax revenue. But indirect tax collections of the Centre are also under duress in FY26.
businessline analysis of data from the Controller General of Accounts (CGA) shows that the Customs collections have declined 7.3 per cent in April–November 2025 to ₹1.43 lakh crore, compared with ₹1.54 lakh crore in the same period of FY25. CGST collections have also, have registered only 5.4 per cent growth in this period, much below the budgeted growth of 10.9 per cent.
Customs currently account for 6.1 per cent of the Centre’s gross tax revenue. The Union Budget had pencilled in 2.13 per cent growth in Customs receipts for FY26, but the YtD drop of 7.3 per cent indicates that the target is likely to be missed. CA Neha Beriwala, partner at S K Patodia & Associates LLP, says the shortfall is linked to “tariff rationalisation over the last few budgets, which has reduced effective duty rates even when volumes remain steady. Going forward, sustained growth in Customs will depend more on a recovery in demand and trade, rather than further compliance tightening.”
Read more at : The Hindu businessline
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