FM confident indirect tax kitty to exceed Budget target
February, 25th 2008
The Finance Ministry on Sunday expressed optimism that indirect tax collections would exceed the budget target of over Rs 2,79,000 crore for the current fiscal, even though the excise duty collections growth was a matter of concern.
"I am confident that the budget targets (for indirect tax collections) would exceed this year too," Finance Minister P Chidambaram said at an investiture ceremony of Presidential appreciation certificates for the officers of Central Excise, Customs and Narcotics departments here.
The Finance Minister said indirect tax collections exceeded the budget targets by Rs 8,615 crore in the 2005-06 fiscal, while in 2006-07, they surpassed the targets by Rs 11,300 crore.
Accordingly, the departments concerned were given Rs 86 crore and Rs 113 crore for these two years to provide better service conditions to their officials as part of the scheme to give one per cent of excess collections for this purpose.
Expressing confidence that indirect tax collections would surpass the budget targets this year as well, Chidambaram said this would enable the government to give one per cent excess collection to the departments concerned.
However, Central Board of Excise and Customs (CBEC) Chairman S K Shingal said growth rate of excise duty collections was a matter of concern.
Excise duty collections were growing at a rate of 7.6 per cent, he said.