25% Growth In Customs Receipts

The finance ministry has projected a growth of 25 per cent for customs and 14 per cent for excise. The total collections in the current year are targeted at Rs 44,435 crore under customs and Rs 46,884 crore under excise.

However, revenue department officials maintain that the first set of data after the presentation of the budget for the period ended August 22, reveal a pick-up in excise collections. They maintain that the tightening of modvat credit rules and imposition of stiff penalties for excise violations led to higher collections.

Customs receipts stood at Rs 12,725 crore at the end of July compared with Rs 10,133 crore in the same period of 1995-96. At Rs 12,776 crore, excise collections were slightly higher in the same period of the current financial year compared with Rs 12,082 in 1995-96. Combined indirect tax receipts at the end of July stood at Rs 25,501 crore.

At the end of May, the collections had aggregated Rs 12,570 crore. The spurt in customs receipts is despite the cuts in import tariffs in the past two budgets. Finance ministry officials say most of the imports are export-related and lower tariffs work to the advantage of exporters. The buoyancy witnessed since last year has been sustained in the current financial year. The increase was 47 per cent in April, 30 per cent in May and 38 per cent in June compared with 32 per cent, 36 per cent and 35 per cent respectively in 1995-96.

However, excise receipts grew by 3 per cent in April and 6 per cent in May compared with 5 per cent and 6 per cent respectively in the same period last year.

Officials in the revenue department explained that this was due to leakages from the system and changes in procedures to prevent misuse.