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Customs taxes bang on target
BS Economy Bureau in New Delhi |
February 04, 2004 08:21 IST
The indirect tax kitty for 2004-05 is projected to go up by 15.7 per cent as against the revised estimate for 2003-04, largely on account of a whopping Rs 5,200 crore (Rs 52 billion) increase projected in the service tax.
After an indifferent growth rate of just about eight per cent through most of current fiscal, excise duty is also expected to rise by Rs 14,820 crore (Rs 148.20 billion), registering a growth rate of over 16 per cent.
Accordingly the total indirect tax collection during the next fiscal is expected to touch Rs 1,73,699 crore (Rs 1,736.99 billion) during 2004-05, against the revised estimate of Rs 1,50,029 crore (Rs 1,500.29 billion) during the current fiscal.
Service tax collection is estimated at Rs 13,500 crore (Rs 135 billion) in 2004-05, up by 62.65 per cent from Rs 8,300 crore (Rs 83 billion) in the revised estimates for the current fiscal.
Finance ministry officials said the excise duty cuts announced by Finance Minister Jaswant Singh will have a buoyant impact on the excise collection front.
Revenue secretary Vineeta Rai said the impact of the lower duty should reflect in lower cost of raw materials for the manufacturing sector, which should translate into a higher collections.
In 2003-04, the CBEC has managed a positive score card only on customs duty, which is expected to touch the budget estimate of Rs 49,350 crore (Rs 493.50 billion). The excise kitty will fall short of the target of Rs 96,791 crore (Rs 967.91 billion) by Rs 4,412 crore (Rs 44.12 billion).
Customs collections are also expected to jump by 7 per cent to Rs 53,000 crore (Rs 530 billion) in 2004-05 as compared to the revised estimate of Rs 49,350 crore (Rs 493.50 billion) in 2003-04.
Excise duty collection from the manufacturing sector is budgeted to increase by 16 per cent to Rs 1,07,199 crore (Rs 1,071.99 billion) in 2004-05 as against the revised estimate of Rs 92,379 crore (Rs 923.79 billion) for this fiscal.
The collection during the current fiscal was 4.5 per cent lower than the target of Rs 96,791 crore (Rs 967.91 billion).
In his speech the finance minister introduced a number of user-friendly tax administration measures including the round-the-clock electronic customs document for clearance of goods to be extended to 23 customs formations.
Singh said his ministry would examine the suggestion that wherever there is exemption from countervailing duty on an imported capital good, deemed export benefits should be given to very same capital goods manufactured indigenously.
"The suggestion is to be examined in consultation with commerce ministry," he said in his speech.
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