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Govt to evolve mechanism to meet indirect tax target: Sinha

The government on Wednesday decided to evolve a mechanism to ensure that targets set for indirect tax collections for this fiscal were met.

"We will evolve a necessary mechanism to ensure that targets are met in customs, excise and service tax collections," Finance Minister Yashwant Sinha told reporters after three-and-a-half hour review meeting with the Central Board of Excise and Customs.

Total indirect tax collection, which includes excise and customs mainly, are targeted at over Rs 1,400 billion this fiscal.

Asked if the Centre would be able to achieve the indirect tax collections in the face of economic slowdown, Sinha said, "We will try to get as close to the target as possible, if we are unable to achieve it."

Sinha had earlier stated that the latest trend in revenue collection was encouraging, especially after the advanced tax receipts till September 15. He has also said that the government intends to maintain the buoyancy to meet the revenue target of Rs 2,317.45 billion this fiscal.

Buoyancy in tax collections is expected to offset the 45 per cent higher direct tax refunds during the period between April and September.

Direct tax collection is estimated to be about Rs 360 billion till the third week of September, as against Rs 316.40 billion during the same period last year.

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