Excise duty collections sluggish: CBEC

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The Government on Friday exuded confidence of meeting the indirect tax collection target of Rs 3.2 lakh crore during 2008-09, even as it pointed towards tardy growth of excise duty mop up due to duty cuts on petrol, diesel, besides misuse of exemptions given to certain areas.

“Growth in excise duty collections are sluggish because of duty cuts on petrol and diesel. Area exemptions have also been misused,” Central Board of Excise and Customs (CBEC) Chairman P C Jha told reporters in Faridabad.

He said exemptions have been tightened in Jammu and Kashmir, northeast, Kutch.

To check excise duty evasion, a measure would be taken to assess duty payments through third party information next month in a phased manner, he said.

Third party information could be sought from electricity department, information officers of states, Jha said.

Currently, third party information is used to track any evasion in income tax through annual information returns.

Jha, however, said indirect tax collections targets are likely to be met this fiscal.

“Overall present indications are that we are likely to achieve the target by this fiscal end,” Jha said.

He said the positive factor is rupee depreciation, which would increase assessable value of imported goods which will raise duty collections.

The indirect tax collections have touched Rs 1,12,643 crore by August-end, achieving over 35 per cent of the budget estimates of Rs 3,20,000 crore for the current fiscal.

Revenue collections from customs and excise duty grew by 10.5 per cent to Rs 93,856 crore by August-end, while service tax collections rose by 24.9 per cent at Rs 18,787 crore till July-end, against Rs 15,043 crore collected during the same period last year.