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Drought not to affect excise mop-up: CBEC

Central Board of Excise and Customs on Friday said drought situation will not affect excise duty collections and Centre was hopeful of attaining Indirect Tax target of Rs 1,36,334 crore (Rs 1,363.34 billion) this fiscal.

"It is too early to say that drought will affect excise collections. We have to see how manufacturing sector moves," CBEC chairman M K Zutshi told reporters after a seminar on Growth Imperatives for Security Systems Industry organised by Associated Chambers of Industry.

He said the excise collections were growing at 22 per cent and CBEC was hopeful that Indirect Tax target for this fiscal would be attained.

Government collected Rs 24,043.74 crore (Rs 240.44 billion) in excise during April-July 2002 compared to Rs 19,718.73 crore (Rs 197.19 billion) in the year-ago period. Centre targets to mop up a total Rs 91,141 crore (Rs 911.41 billion) from excise duties during this fiscal.

On customs duties, Zutshi said the government was "doing well" on the collection, which grew at a meagre 6.31 per cent to Rs 13,671.47 crore (Rs 136.71 billion) during April-July. Centre targets to mop up Rs 45,193 crore (Rs 451.93 billion) from customs this fiscal.

Although manufacturing sector showed an upturn, lower crude prices in international markets and unimpressive customs mop up led to Indirect Tax collections to grow at 15.77 per cent at Rs 37,715.21 crore (Rs 377.15 billion) during the first four months.

Taking into account the direct tax collections growth of 22.62 per cent at Rs 12,517 crore (Rs 125.17 billion), Centre's total tax mop up was up by 17.4 per cent to over Rs 50,000 crore (Rs 500 billion) in April-July.

Zutshi said finance ministry has set up a Task Force to look into different aspects of Indirect Tax and came up with measures to simplify procedures and increase the collections.

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