Indirect tax collections may not meet target

Indirect tax collections may not meet target
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First Published: Thu, Jul 09 2009. 11 55 PM IST
Updated: Thu, Jul 09 2009. 11 55 PM IST
New Delhi: The government may not meet the Budget aim of raising Rs2.7 trillion through indirect taxes in 2009-10, a senior finance ministry official said on Thursday.
Though the target in the full Budget is Rs20,200 crore less than the interim Budget, the collections may be even lower due to recent reduction in excise and service tax rates, the official said.
Indirect tax collections in the first quarter of 2009-10 were 28.2% lower at Rs23,420 crore.
The government had cut excise and service tax last year as part of fiscal stimulus packages to revive the economy. Though the Budget has left excise and service tax rates unchanged, the finance ministry may relook at the rates after the monsoon.
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First Published: Thu, Jul 09 2009. 11 55 PM IST