Friday, February 20, 2009

Duty Cuts Impact Govt Indirect Tax - Feb 20, 2009

The government on Feb 19 said the indirect tax collections in this financial year was affected by the excise duty cuts announced in the last year''s Budget along with the slowdown in some sectors. According to S S Palanimanickam, Minister of State for Finance, "The Central excise duty rates were reduced in the Budget 2008 ... These reductions along with some slowdown in specific sectors affected the revenue (indirect tax) collections".

He also added that central excise duty rates on motor spirit as well as the high-speed diesel oil were also reduced subsequent to the Budget. He pointed out that that government has taken a number of administrative steps to plug the loopholes in law procedures and improve the revenue position as well as the data collection and analysis, audit and anti-evasion measures. Regarding the duty evasion in the export-oriented units, he said that persuasive action is being taken by the government to receive duties along with initiation of penal proceedings.

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