Law To Curb Money Laundering

Addressing the economic editors conference here, he said the finance ministry intended to revert amendments effected for sei-zures in the Income Tax Act because it provided a premium for holding black money.

The government will set up a directorate for valuation of customs and excise and adopt a uniform law to tackle all economic offences, he said.

Later, Singh said, a uniform law for all economic offences is just a thought now. What is on the cards a new law to prevent money laundering.

Expenditure secretary H Ramachandran said non-plan expenditure had already absorbed the impact of the interim recommendations of the Fifth Pay Commission.

 

Total expenditure, including plan and non-plan outflow in April-September in the current financial year was Rs 79,259 crore, 38.7 per cent of the budget estimates for the whole year. During the same period last year, expenditure was 40.4 per cent of the budget estimates for the entire year.

Plan expenditure in the first six months was only 31.9 per cent of the annual estimates. Last year, the corresponding figure was 32.7 per cent. Plan spending tends to recover in the last quarter. Non-plan expenditure in the first half of the current financial year was only 41.2 per cent of the total budgeted limit. It was 41.8 per cent at this point last year.

Singh said collections under direct and indirect taxes were good. Direct tax collections had touched 41 per cent in the first half. Corporation tax proceeds amounted to Rs 7,125 crore out of Rs 19,600 crore for the whole year, accounting for 36.35 per cent of the final target. Similarly, personal income tax collections reached Rs 8,131 crore against a full year target of Rs 17,843 crore, a chunk of 45.51 per cent.

Despite the slow-down in export growth, 49.6 per cent of the customs target has been achieved. Customs revenues were higher by Rs 145 crore than the targeted Rs 22,026 crore in the first half. But excise collections were lower by Rs 600 crore than the target of Rs 22,773 crore.

Referring to service tax on advertising agencies, courier firms and paging services, N K Singh expressed confidence that the current years target of Rs 150 crore will be met.

The revenue secretary added the Modvat changes made in the budget will help recover excise revenue. Over 50 per cent of the interest tax targets have been achieved in the first seven months.