FM Optimistic On Indirect Taxes

New Delhi: The Union Finance Minister, Mr P. Chidambaram, on July 24, showed confidence that the revenue department will meet the budget estimate on indirect taxes for fiscal 2007-08 even as he admitted that the performance so far appeared to be slightly behind on the excise duty front and a shade behind on service tax collections. For 2007-08, the Centre has estimated the budget estimates for indirect taxes at Rs 2,78,013 crore. Elaborating on the first quarter revenue collection performance, Mr Chidambaram said that customs duty collections are ahead of target and registered a 20 per cent increase to Rs 23,570 crore in April-June 2007 as compared to Rs 19,677 crore in the same period last year.

While excise duty collections grew 6.8 per cent in April-June 2007 to Rs 25,161 crore (Rs 23,560 crore), service tax collections in the first quarter grew 31.6 per cent to Rs 7,257 crore (Rs 5,514 crore). The appreciation of the rupee against the US dollar has not had an adverse impact on the customs revenues of the Centre during the first quarter this current fiscal. -oil imports have gone up and price of oil has also gone up. The customs revenues had not been affected by rupee appreciation. Non-oil imports during April-May 2007 stood at $26.55 billion, which is 49.41 per cent increase over the $17.77 billion imports in the same period last year.