Relying on a recovery seen in customs and excise duty receipts in the month of June, Finance minister Arun Jaitley on Monday said the revenue target of R6.2 lakh crore set for this fiscal for indirect taxes would be met.
“Revenue targets in the case of indirect taxes for the current financial year 2014-15 are challenging but are very much achievable,” the minister said at the annual conference of chief commissioners and directors general of customs, central excise and service tax here.
Due to contraction in both excise and customs duty collections, indirect tax receipts had grown only by 4.5% in the April-June period against a targeted 25% annual growth (from last year's actuals), but the trend appears to have changed in the month of June.
Positive growth in excise and customs had helped
indirect tax receipts to grow at 13.5% in June. Customs collection had grown at 6% and excise collections 8.1% in June, while service tax collections grew 27.9% in the month.
“In July 2014 also, the growth pattern is very good,” revenue secretary Shaktikanta Das said at the conference. The collection figures for July are awaited.
“Figures relating to the manufacturing sector in the months of June and July this year are quite encouraging. If this trend continues for a few more months only
then will it constitute a pattern,” a statement issued by the finance ministry said, quoting Jaitley.
Meeting the tax target is seen as a challenging task considering the economic survey has forecast GDP growth in 2014-15 between 5.4% and 5.9%.
The tax department is attempting to prevent tax evasion and encourage voluntary compliance in its attempt to boost revenue.
The Central Board of Excise and Customs has approved a CENVAT credit verification project, which will help in preventing misuse of the input tax credit facility, the statement said, quoting CBEC chairperson J.M. Shanti Sundharam.
The statement further said that CBEC was taking several steps to reduce transaction cost to taxpayers and to ensure speedy customs clearance at ports.