The government on Tuesday acknowledged that achieving the budgetary target for indirect taxes would be challenging this year but hoped a number of measures announced to perk up manufacturing and infrastructure sectors would help economic growth and tax buoyancy.
“The real challenge is with regard to indirect taxes. Whether we will be able to achieve that is really difficult,” Revenue secretary Shaktikanta Das said at a post-Budget meeting with industrialists in the capital.
He, however, said a 15 per cent growth in direct tax collection was not difficult to achieve as the economic growth was expected to be about one per cent higher in 2014-15 than last year.
The government has budgeted Rs 6,24,902 crore in indirect tax collection in 2014-15, which is 20 percent higher than the revised indirect tax mop-up in the last fiscal.
The direct tax target for the current financial year has been kept at Rs 7,58,421 crore. This is 15 per cent higher than the 2013-14 target. But with an economic growth projected above 5.4 per cent in fiscal 2015, the target looks less difficult to achieve.
“A 15 per cent growth in the direct tax collection in 2014-15 is a flat growth when the economy is expected to grow one per cent higher than last year,” Das said.
The revenue secretary said that he was hopeful of a revival in industry, especially the manufacturing sector, with a number of measures announced in this year’s Budget to kickstart the economy.
The Budget announced a slew of measures to revive the manufacturing sector, the growth in which contracted by 0.7 per cent in the year ending March 2014.