On a day the government sought to lower its GDP (gross domestic product) growth projection for 2011-12 and is uncertain about the level of fiscal deficit, the Central Board of Excise and Customs provided some positive data to cheer about. Having mopped up a 16.8 per cent higher indirect tax revenue of Rs.2.52 lakh crore during the first eight months this fiscal, it expressed optimism that the scaled-up collection target would be met.
Briefing the media here on the heartening trend in indirect tax collections despite the slowdown in industrial growth, CBEC Chairman S. K. Goel said: “We have achieved 63.04 per cent of budget estimates of indirect taxes till November against 62.83 per cent in the same period of the previous fiscal … I am optimistic of achieving the revised indirect tax target of over Rs.4-lakh crore”.
However, the slowdown and the tinkering in duties on oil to minimise the impact of high prices in an inflationary environment has shown up in Central excise collections.
Official data revealed a 6.5 per cent drop in collections to Rs.11,761 crore in November which was mainly owing to a cut in levies on petroleum goods.
“There has been a fall in Central excise, which is a matter of concern. I have called a meeting to discuss why Central excise is showing negative growth,” he said.
Other tax levies
During the month, the other tax levies showed positive growth as the total indirect tax mop-up in November rose by 6.36 per cent to Rs.31,082 crore from as compared to Rs.29,222 crore collected in the same month of 2010.
