Govt hopes to exceed indirect tax collection estimate

Ahead of Union Budget, the government today said it hopes to exceed the indirect tax collection estimate of Rs 3.36 lakh crore for this fiscal in view of the buoyancy in the economy.

"I am very, very hopeful," Central Board of Excise and Customs (CBEC) Chairman S Dutt Majumder told reporters on a query as to whether the government will be able to collect indirect taxes, exceeding the revised estimates.

Boosted by higher revenue mop-up during April-December 2010-11, the government last month upped indirect tax collection estimates by 7% to Rs 3.36 lakh crore for this fiscal, from earlier Budget target of Rs 3.15 lakh crore.

It also raised the target for excise collection, pegging it at Rs 1.33 lakh crore, 31.2% more than last year.

"Let me tell you we will reach it (excise target), we will exceed it," Majumdar said on the sidelines of a function to celebrate Excise Day here.

He further said that customs and service tax collections have also been robust.

In the Budget 2010-11, the government targeted a collection of Rs 3.15 lakh crore through indirect taxes -- from customs, excise and service tax.

Customs duty collection has increased by about 68% during April-December 2010-11, from the corresponding period last fiscal. Similarly, the year-on-year growth in excise duty and service tax collections increased by 33% and 18%, respectively.

The upward revision in the tax collection target was also due to the 8.9% economic growth during the first half of the current fiscal.

The buoyancy in the indirect tax collection during the current fiscal can also be attributed to partial withdrawal of economic stimulus measures in the last Budget.

In the Budget 2010-11, Finance Minister Pranab Mukherjee raised excise duty by 2% to 10% as part of a plan to gradually withdraw the incentives given to industry to combat the impact of the global financial meltdown.