Despite all indications to the contrary on the back of faltering industrial activity and the resultant general gloomy corporate sentiment, the Central Board of Excise and Customs (CBEC) has expressed optimism to achieve the FY12 indirect tax collection targets.
Mumbai: Despite all indications to the contrary on the back of faltering industrial activity and the resultant general gloomy corporate sentiment, the Central Board of Excise and Customs (CBEC) has expressed optimism to achieve the FY12 indirect tax collection targets.
"We hope to achieve the desired levels. We have achieved 14.6 percent growth till February, which is 89 percent of the total target," CBEC Chairman S K Goel said over the weekend here.
This optimism comes on the heels of the Finance Ministry pegging the Budget estimates on revenue generation and fiscal deficit falling short of the revised targets.
While fiscal deficit is set to overshoot by a full 130 basis points to 5.9 per cent this fiscal, the Government has admitted that it will miss the revenue targets too.
Manufacturing activity has been heading south since the third quarter, leading to much lower-than-expected third quarter GDP growth at 6.1 per cent, the lowest in the past three years. Excise and customs duties fall when the growth momentum loses sheen.
Goel was in the financial capital to do a post-Budget review with his officers in Mumbai, the single-largest collection centre. The metropolis contributes over 30 percent of the overall direct tax mop-up.
The CBEC chief said the final figure will be known only on March 31, but "we hope to achieve the targets."
The Government has fixed a target of Rs 3.92 trillion for indirect tax collection for the outgoing fiscal.
According to the latest figures, indirect tax mop-up jumped 14.6 percent in the April-February period to Rs 3.49 trillion. Of this, Rs 1.29 trillion came from excise levy, up 6.2 percent. Customs collection rose 12 percent to Rs 1.36 trillion during the 10-month period.
The service tax collection during the period saw 37 percent growth to Rs 82,562 crore.