Pranab confident of meeting indirect tax collection target

Complimenting the efforts of revenue department officials for their "spirited performance in tax collections in 2011-12", finance minister Pranab Mukherjee todayt expressed confidence that they would meet the indirect tax collection target of Rs 5.05 lakh crore for 2012-13.

After addressing senior officials of the Central Board of Excise and Customs (CBEC) in New Delhi, Mukherjee told reporters, "They have done good job last year. This year also, I do hope it would be possible for them to do their job and realise the revenue target which has been fixed for them."

Despite a slowdown in growth and the duty cuts effected on petroleum products in June 2011, the indirect tax mop-up in 2011-12 at Rs 392,781 crore was 99.6 per cent of the Budget Estimate of Rs394,000 crore.  

The target for indirect tax collections in 2012-13 has been placed at Rs.499,694 crore  - a growth of over 27 per cent. This target has been fixed keeping in view the increase in central excise and service rate from 10 to 12 per cent the observed buoyancy in service tax collections.

In 2011-12, the government had revised the indirect tax collection target upward after the reduction in customs and excise duties on petroleum products following the hike in diesel, kerosene and LPG prices in June 2011.

In April 2012, the indirect tax collection was Rs 33,045 crore, up 10.4 per cent year-on-year.