The Hindu Business Line : `Indirect tax revenue targets realistic'

THE Finance Ministry on Wednesday maintained that the Centre's Budget estimates on indirect tax revenues for 2004-05 are "realistic" and that there should be no doubt over its ability in meeting the indirect tax revenue targets.

"I have no reason to believe that we are not going to meet the indirect tax revenue targets for 2004-05. There is already good buoyancy in tax collections. If the volume growth in petroleum sector were to increase by more than 10 per cent, then we can easily meet the targets," Mr S.K. Bharadwaj, Member (Budget), said here.

The Union Budget has estimated a gross tax revenue collection of Rs 3,17,733 crore in 2004-05.

The revised estimates for 2003-04 had pegged the gross tax revenue at Rs 2,54,923 crore.

While the excise duty collections targeted for 2004-05 is Rs 1,09,199 crore (Rs 92, 379-crore revised estimates for 2003-04), the UPA Government has targeted customs duty of Rs 54,250 crore for 2004-05 (Rs 49,350 crore).

Addressing a seminar on post-Budget economic scenario, organised by the Associated Chambers of Commerce and Industry of India (Assocham) and the UTI Mutual Fund (UTIMF), Mr Bharadwaj pointed out that service tax collections were showing robust growth in the current fiscal and that the target of Rs 14,150 crore for service tax was not ambitious.

"For the first three months of the current fiscal, the average service tax collections every month were nearly 100 per cent more than those in the similar period last year. In the current fiscal, till now, we are collecting about Rs 800 crore of service tax every month as against a collection level of about Rs 450-crore every month last year," Mr Bharadwaj said.

Asked as to why the UPA Government's budget estimates for 2004-05 in respect of the existing services (such as telephone, brokerage) have been scaled down as compared to the budget estimates made in the interim budget,

Mr Bharadwaj said that the scaling down was mainly on account of the proposed move to extend credit of service tax and excise duty across goods and services (cross vatability).

He also made it clear that all undisputed tax arrears would be recovered and that this tidy sum would help bolster revenues.

"There are a number of cases that have moved from the first appellate authority to the Supreme Court and a final decision has already been made.

"But still the assesses have not paid the tax arrears. We will recover these sums as per law," Mr Bharadwaj said.

The CBEC member also promised industry that the excise department would not "arm-twist" them to postpone their claims of cenvat credit for meeting year-end revenue targets.

Responding to queries as to why the computer peripherals should bear excise duty of 16 per cent when manufacture of computers is now excise duty exempt, the CBEC Member said that the Government is seized of this matter and would take an appropriate decision.

He also said that all post-budget representations including that of the tractor industry would be given due consideration.