Centre Exceeds FY26 Indirect Tax Collection Projections, Meets Target

Central Government Meets Indirect Taxes Target for FY26

The central government has largely met its indirect taxes target for the fiscal year 2026 (FY26), with collections from most taxes exceeding the revised estimates (RE). According to a senior government official, the government had set a target of generating Rs 16.47 lakh crore from indirect taxes, which includes GST, customs, excise, and other taxes.

Collections from customs stood at 102 percent of RE for FY26, while central excise collections were at 101 percent. GST and non-GST revenues reached 101.2 percent of RE, and central GST collections stood at 100.8 percent. However, cess collections were at 63 percent of RE, referring to the Health security cess, which had a revised estimate target of Rs 2,330 crore for FY26.

The customs revenue target for FY26 was set at Rs 2.58 lakh crore, excise duty target was Rs 3.37 lakh crore, and GST mop-up aim was Rs 10.46 lakh crore. Of the total GST figure, the central GST aim was Rs 9.58 lakh crore.

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For FY27, the overall target for indirect tax mop-up is Rs 16.97 lakh crore. However, it is difficult to provide a realistic revenue estimate for FY27 at this stage, as an assessment of the impact of recent changes in customs and central excise duties is still underway.

In a recent development, the Centre announced tax tweaks on fuel products, which is likely to cost the exchequer Rs 5,500 crore in tax revenue every fortnight.