Collection system not perfect; need to improve mechanism: CBEC

Indirect tax collection system is not perfect and there is a need for toning it up with modernisation and automation, Chairman of the Central Board of Excise and Customs P C Jha has said.

As part of modernisation, a fully automatic system would be put in place within six months to enable payment of excise duty anywhere online, he said, adding that such a system is already in vogue for customs purposes.

"We expect that in six months the system will be automated for payment of excise duty also. We are working towards it," Jha told PTI.

"We will not be satisfied till the system is perfect which at present it is not, he said giving details of the progress made in the system, including the successful use of third-party information system for excise collection.

Asked how much improvement in revenue collection could be expected if the system was modernised and the leakages were plugged, he said the government very consciously believes in a very modern system wherein every taxpayer is considered honest and law abiding unless proved otherwise.

So, it would be difficult to quantify the improvement, he said, adding, the government would continue to believe the assesses were giving correct declaration.