Achieving indirect tax target a challenge: Revenue Secy

The Finance Ministry today said achieving the Rs 6.24 lakh crore indirect tax collection target is a "challenge" as the tax buoyancy would depend upon revival of the economy and manufacturing sector.

"In indirect taxes, the targets are a challenge... Because of recent measures taken by the government, we expect manufacturing to show better results," Revenue Secretary Shaktikanta Das told PTI in an interview.

The government has budgeted to collect over Rs 6.24 lakh crore from indirect taxes in the current fiscal, up 20.28% over the collection in 2012-13.

"We expect buoyancy in the economy to also reflect itself by way of buoyancy in tax collections," Das said.

However on the direct taxes side the target would "definitely" be achieved, he said, adding last year the growth was 13.7% and this year the target is 15%.

The government has targeted to raise Rs 7.36 lakh crore from direct taxes in the current fiscal, up from over Rs 6.36 lakh crore collected last year.

Das further said that most of the budgeted revenue gains of Rs 7,525 crore in indirect taxes would come in from excise duty hike in cigarettes and pan masala.

Finance Minister Arun Jaitley in his Budget had hiked excise duty on cigarettes in the range of 11% to 72%. The excise duty on on pan masala was increased from 12% to 16%, on unmanufactured tobacco from 50% to 55% and on gutkha and chewing tobacco from 60% to 70%.

Jaitley has announced a host of measures, including hiking tax exemption limit, incentives for the housing sector and relief in indirect taxes on auto and other sectors to promote industrial output and boost growth.

After remaining at sub-5% in last two fiscals, economic growth in the current fiscal is estimated to be between 5.4-5.9%.

EDITORIAL OF THE DAY

  • India’s political space acts as a safety valve for maverick politicians and frustrated electorate

    While it is easy to be cynical about Indian democracy and its ways, the fact is that the vast political space that the system provides for in this cou

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Taslima Nasreen

Bangladesh no country for atheists

It’s a matter of pride to be a freethinker, atheist ...

Purnendu Ghosh

Silence makes you aware of yourself

Often, we don’t feel the necessity of making contact with ...

Shona Adhikari

Artistic focus on women's empowerment

The focus on the girl child remains an important one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture