The government could be staring at a shortfall of as much as Rs 33,000 crore in indirect tax collection by the end of the current fiscal,if the dismal trend in customs and excise mop-up during the first four months of 2012-13 is anything to go by.
According to an internal assessment of the Central Board of Excise and Customs (CBEC),given the present rate of growth in tax collection, customs up 11 per cent till July as against the asking rate of 25 per cent,and 29.2 per cent in excise as against the asking rate of 34.4 per cent customs duty collection would see a shortfall of Rs 23,000 crore while excise duty collections could fall short by Rs 10,000 crore during 2012-13.
The budgetary target for indirect tax collection is Rs 5,05,044 crore and the department is pinning its hopes on the service tax collection for making good the shortfall that may be witnessed in customs and excise. The department is looking to rake in Rs 12,000 crore to Rs 15,000 crore additional revenue through the service tax,which showed an increase of 40 per cent up to July as against asking rate of 27.4 per cent, a government official told The Indian Express.
The official said that according to the departments assessment,it will have to work towards getting Rs 18,000 crore to Rs 21,000 crore more to meet the revenue target.
Earlier last week,finance minister P Chidambaram had exuded confidence that the department will be able to meet the revenue target for the current fiscal. He had asked the chief commissioners to focus on the top 100 companies as according to statistics,they make up 90 per cent of the total collection for most tax categories. Customs collection stood at Rs 13,174 crore during July,up 8.2 per cent from the last year while excise collection stood at Rs 13,957 crore,up 27.6 per cent during the month. Service tax collection was Rs 10,002 crore during the month,up 37.4 per cent.
In the first quarter,customs collection witnessed a slowdown due to a 6 per cent dip in imports in dollar terms along with increased outgo in drawback schemes. Similarly,during the first quarter,the manufacturing sector slowed down and grew at an insignificant 0.7 per cent. The department plans to augment revenue collection by focussing on recovering arrears worth Rs 10,000 crore.
* Customs duty collection may see a shortfall of R23,000 crore while excise would fall short by R11,000 crore
* The budgetary target for indirect taxes is R5,05,044 crore
* The Central Board of Customs and Excise hopes to bridge the shortfall through an additional R15,000-R20,000 crore in service tax yields