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Duty cuts, slowdown impact govt indirect tax kitty

Duty cuts, slowdown impact govt indirect tax kitty
PTI
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First Published: Thu, Feb 19 2009. 06 26 PM IST
Updated: Thu, Feb 19 2009. 06 26 PM IST
New Delhi: The government on Thursday said excise duty cuts announced in the last year’s Budget and slowdown in some sectors have affected the indirect tax collections in this fiscal year.
“Central excise duty rates were reduced in the Budget 2008 ... These reductions along with some slowdown in specific sectors affected the revenue (indirect tax) collections,” minister of state for finance S S Palanimanickam said in a written reply in the Rajya Sabha.
He added that central excise duty rates on motor spirit and high speed diesel oil were also reduced subsequent to Budget, which could have effected the collections.
However, the minister pointed out that a number of administrative steps has been taken by the government to plug loopholes in law procedures and improve revenue position and data collection and analysis, audit and anti-evasion measures.
Replying to another question on duty evasion in the export-oriented units (EOU), he said that persuasive action is being taken by the government to receive duties along with initiation of penal proceedings.
The duties evaded by EOU’s, in fact, have doubled to Rs257.6 crore in 2007-08 compared to Rs128.8 crore in the previous year, he said.
However, he added that the range officers regularly visit the EOUs for verification of duty free capital goods, raw materials and others.
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First Published: Thu, Feb 19 2009. 06 26 PM IST