EC writes to cabinet secy on tax collection announcements

Not taking kindly the Finance Ministry’s decision to give credit to the government for bumper tax-collection amidst the Lok Sabha elections, the Election Commission sought explanation from the Cabinet Secretary on what it termed a violation of the model code of conduct. The EC has already expressed its displeasure to the Finance Ministry for calling a press conference on Tuesday — without its permission — to announce the good-show in revenue collection and giving the Government credit for it.

The letter sent to the Cabinet Secretary does not specify any time-limit for the getting the explanation from the government, sources in the EC said, adding that it should work as a warning. Most of the senior Finance Ministry officials, including Revenue Secretary, Finance Secretary and Chairman, CBDT, were present in the press-conference where it was said the tax collections had grown by 18 per cent to Rs 2,52,162 crore in 2003/04 resulting in higher tax-Gross Domestic Product (GDP) ratio at 9.1 per cent and lower fiscal deficit.

It was also said at that for the first time since 1995-96 that the provisional annual figures of revenue collections have exceeded budget estimates. It was for the first time that direct tax collections had crossed Rs. 1,00,000 crore.Last week, the EC had forwarded a complaint to the Petroleum Ministry on government interference in pricing of petro-product.