Economy

Achieving indirect tax collection target is a ‘challenge’: Revenue Secretary

PTI New Delhi | Updated on March 12, 2018 Published on August 03, 2014

The Finance Ministry today said that achieving the Rs 6.24 lakh crore indirect tax collection target is a “challenge” as the tax buoyancy would depend upon revival of the economy and manufacturing sector.

“In indirect taxes, the targets are a challenge...

Because of recent measures taken by the government, we expect manufacturing to show better results,” Revenue Secretary, Shaktikanta Das, told PTI in an interview.

The government has budgeted to collect over Rs 6.24 lakh from indirect taxes in the current fiscal, up 20.28 per cent against those collected in 2012-13.

“We expect buoyancy in the economy to also reflect itself by way of buoyancy in tax collections,” Das said.

Direct tax target

However, on the direct taxes side, the target would “definitely” be achieved, he said, adding that last year the growth was 13.7 per cent and this year the target is 15 per cent.

The government has targeted to raise Rs 7.36 lakh crore from direct taxes in the current fiscal, up from over Rs 6.36 lakh crore collected last year.

Das further said that most of the budgeted revenue gains of Rs 7,525 crore in indirect taxes would come in the form of excise duty hike in cigarettes and pan masala.

Excise duty on cigarettes

The Finance Minister, Arun Jaitley, in his Budget had hiked the excise duty on cigarettes in the range of 11 per cent to 72 per cent.

The excise duty on pan masala was increased from 12 per cent to 16 per cent, on unmanufactured tobacco from 50 per cent to 55 per cent and on gutkha and chewing tobacco from 60 per cent to 70 per cent.

Jaitley has announced a host of measures, including hiking the tax exemption limit, incentives for the housing sector and relief in indirect taxes on auto and other sectors to promote industrial output and boost growth.

After remaining at sub-5 per cent in the last two fiscals, economic growth in the current fiscal is estimated to be between 5.4 per cent and 5.9 per cent.

Published on August 03, 2014
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