95% Excise Comes From 4,000 Firms

Shocking it may sound, but just about 4,000 of the 95,000 excise assessees in India account for over 95 per cent of the excise collections in a year.

According to finance ministry sources, this is a matter of grave concern since it leads to a perception that only a few assessees are being taxed and a predominant majority escape proper scrutiny. Further, it also reveals that the realisation from excise is not tapped to its potential.

Looking at the pattern of excise collection from companies in the steel and cement sectors, the department of economic affairs in the finance ministry has found that realisation is highly concentrated, meaning the kitty comprises collections largely from the top few assessees. The average collection per company in these two sectors was very low, officials said.

The key sectors that contribute about 50 per cent to the excise purse are petroleum, tobacco, steel, cement and automobiles. In 2000-01, the receipts from these sectors were Rs 29,318 crore, 43 per cent of the excise collection of Rs 68,282 crore.

Revenue department officials, however, say that looking at the average collection per assessee for a fortnight or a month may not give the right picture.