PSEs are among the best taxpayers

Public Sector Enterprises contributed over Rs 95,000 crore (Rs 950 billion) to the government exchequer during the financial year 2004-05 which accounted for 33 per cent of the total revenue receipt, said apex PSE body, Standing Conference of Public Enterprises.

PSEs are among the best taxpayers in the country. Their compliance level is very high whether it is payment of excise, customs or other taxes, said S M Dewan, director general, SCOPE at a two-day seminar on indirect tax.

He said, service tax has become a very important revenue source for the government which initially started with three services. Services currently account for 52 per cent of GDP constituting 5 per cent of total gross revenue receipts.

In the year 2006, services will be contributing over 60 per cent of the GDP. In developed countries, services contributed about 70 per cent of the GDP, Dewan said.

Speaking at the seminar Joint Secretary, Ministry of Finance, Gautam Ray said, the government has gradually brought down customs duty to make the domestic industry competitive.

It is now at an average rate of 12.5 per cent, which is still higher vis-à-vis other neighbouring countries like Malaysia, Thailand, Indonesia etc, he said.