Extra efforts needed to achieve tax targets: Pranab

Amid fears of moderation in growth, Finance Minister Pranab Mukherjee today said sustained efforts would be needed to achieve indirect tax collection target of Rs 3.92 lakh crore, about 15% more than the last fiscal.

The Minister, while addressing the annual conference of chief commissioners and directors general of CBEC here, also called upon the tax officials to work towards reducing the tax litigations.

Noting that doubts were being raised over growth projection of 9% for the current fiscal, Mukherjee said, it would be possible to achieve a growth rate of 8.75% (plus-minus 0.25%) with "hard work".

To realise indirect tax collection of Rs 3.92 lakh crore in 2011-12, the Minister said, "you (tax officials) would need a growth of nearly 15%. The task before you is very challenging and will require sustained and strategic efforts throughout the (this) financial year".

On taxes locked in litigations, Mukherjee said it currently stood at around Rs 35,000 crore as against a little over Rs 9,000 in March 2005.

"This in an area of serious concern. You must, therefore, jointly devise a strategy for realisation and liquidation of at least 50% of this locked up revenue during the current fiscal.

"This would also provide the necessary fillip to your efforts in attaining the budget revenue targets for 2011-12," he said.