The Central Board of Excise and Customs (CBEC) has said it may meet indirect tax collection target for this fiscal, despite indications to the contrary due to faltering industrial activity and the resultant general gloomy corporate sentiment.
"We hope to achieve the desired levels. We have achieved 14.6% growth till February, which is 89% of the total target," CBEC Chairman SK Goel said.
Meanwhile, the Finance Ministry has indicated that the Budget estimates on revenue generation and fiscal deficit may fall short of the revised targets.
While fiscal deficit is set to overshoot by a full 130 basis points to 5.9% this fiscal, the government has admitted that it will miss the revenue targets too.
Manufacturing activity has been heading south since the third quarter, leading to much lower-than-expected third quarter GDP growth at 6.1%, the lowest in the past three years. Excise and customs duties fall when the growth momentum loses sheen.
Goel was in the financial capital to do a post-Budget review with his officers in Mumbai, the single-largest collection centre. The metropolis contributes over 30% of the overall direct tax mop-up.
The CBEC chief said the final figure will be known only on March 31, but "we hope to achieve the targets".
The government has fixed a target of Rs 3.92 lakh crore for indirect tax collection for the outgoing fiscal.
According to the latest figures, indirect tax mop-up jumped 14.6% in the April-February period to Rs 3.49 lakh crore. Of this, Rs 1.29 lakh crore came from excise levy, up 6.2%. Customs collection rose 12% to Rs 1.36 lakh crore during the 10-month period.
The service tax collection during the period saw 37% growth to Rs 82,562 crore.
