Post-budget duty cuts to cost Rs 40,475 crore

NEW DELHI: The government will lose Rs 40,475 crore of indirect taxes during the year because of duty cuts announced after the budget, Central Board of Excise and Customs (CBEC) Chairman P C Jha said here on Wednesday.

"The total negative impact of the post-budget duty cut is Rs 40,475 crore," Jha said, adding that the figure includes what has been foregone because of the across-the-board 4 per cent cut in excise duty announced as part of the stimulus package on Sunday.

"Excise collection in September-October this year has been less compared to last year. This is a very serious thing. If we are to meet the target, we have to maintain a growth rate of 9.3 per cent in excise," he said.

Jha spoke to reporters on the sidelines of a PHDCCI conference. On the 4 per cent excise duty cut, he said, "That is in a particular economic situation. Manufacturing needed relief, which has been provided."

"We are trying our best to step up collection and meet the target," he added.

Pointing out that this is a difficult year, Jha said, "We have given instructions to field formations to have equal concern for revenue collection and taxpayers."

It may be noted that excise collection fell by 8.7 per cent in October. Total collection during the seven-month period went up by mere 0.6 per cent while the government needs to maintain a target of 9.3 per cent to meet the target collection.