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No slippage in indirect tax collection: FM
September, 10th 2009

The government today said there would be no slippage in indirect tax collection on account of drought nor is it considering any tax cuts.

I am not thinking of giving any tax concessions, Finance Minister Pranab Mukherjee told reporters when asked whether the drought situation will lead to reduced collection.

Nearly half of the country is reeling under drought that is expected to hit demand in rural India.

On the contrary, he exuded confidence that indirect tax tax collection target for the current fiscal would be met.

I am hoping so, he said about meeting the target. The government set a revenue target of about Rs 2,70,000 crore from indirect taxes during the current fiscal.

He expects an improvement in indirect tax collection from the third quarter, although it has declined 28 per cent in the first four months of FY10. Expressing concern, he said, The trend is a matter of worry and reflects the overall slowdown of the economy and the effect of stimulus measures.

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