New Delhi: The Central Board of Excise and Customs (CBEC) is keeping fingers crossed over meeting the budget target of around Rs3.2 lakh crore as the customs and excise collections together are expected to take a hit of over Rs40,000 crore due to post-budget tax cuts.
“Customs duty collections will take a hit of Rs27,885 crore and excise duty by Rs12,590 crore due to tax cuts announced after the budget. This is certainly a difficult year. But this is too early to say about meeting the target,” said CBEC chairman PC Jha.
While excise collections are not good, customs duty mop-up is fairly good till November this fiscal and service tax collections are above the targeted growth rate till October, he said.
Exise duty collections nosedived to register a negative growth of 15% at Rs8,556 crore in November, 2008 from Rs10,065 crore a year ago.
Customs duty collections also dipped by 0.8% to touch Rs8,931 crore from Rs9,005 crore during the period.
Despite a dip, customs duty mop-up was 13% higher at Rs75,551 crore till November this fiscal from Rs66,838 crore a year earlier.
However, service tax growth recorded a growth of around 30% at Rs34,958 crore till October this year against Rs26,971 crore a year ago against a target of 30% growth. Information about service tax collections come a month after excise and customs duty collections figures were released.
Fall in excise duty should be seen in the overall context as the industry is in the need of sops at this time to boost growth, said CBEC chairman.