Excise may fall short of revised targets

The Centre could face a shortfall in the excise duty collections despite a downward revision of the target.

Latest data compiled by the finance ministry up to February 28, indicates collections from excise at Rs 85,697 crore, a growth of 6.9 per cent over the corresponding period last year. Finance Ministry officials, however, told Business Standard that the slow growth in excise collection was mainly because of growth of over 25 per cent in exports.

"Since the excise duty on exports has to be rebated, the surge in exports has led to a higher rebate. In addition to this, the government also had to forgo around Rs 5,000 crore on account of the reduction in excise duty on petroleum products," an official said adding that the growth in excise had been under 10 per cent since October on this account.

Customs duty collection during the period up to February 28 has been pegged at Rs 50,785 crore, an increase of over 16 per cent compared with the same period in 2003-04.

Service tax collection during the period was pegged at Rs 10,761 crore, an increase of nearly 64 per cent over the same period a year ago.

In the case of direct taxes, income tax collections amounted to Rs 35,920 crore, a 14 per cent growth over the previous year while corporation tax amounted to Rs 55,252 crore, a growth of 36 per cent over 2003-04.

Officials said they were hopeful that the targets in case of service tax, corporate and income tax set for the current fiscal would be achieved.