Government Maintains Rs 33.61 Lakh Crore Tax Collection Target in Revised Estimate, No Justification for Fuel Tax Reduction: Official

NEW DELHI, Dec 11: According to a senior finance ministry official on Monday, the government is expected to adhere to the budgeted estimate of a total tax collection target of Rs 33.61 lakh crore for the current fiscal year in the revised estimates. The official noted that direct tax collection is up by approximately 20%, and indirect tax is higher by 5% so far. With data available for the first eight months of the fiscal year, the government plans to stick to the budget numbers in the revised estimates. The Union Budget for 2023-24 had set the total tax collections target at Rs 33.61 lakh crore, representing a 10.1% increase from the previous year. For the current fiscal year, an estimated Rs 18.23 lakh crore is expected to be collected in direct taxes, and Rs 15.38 lakh crore from indirect taxes. The official stated that any reduction in taxes on petrol and diesel is not warranted, citing the cooling of Brent crude prices in international markets. The official emphasized that when crude oil prices were high, excise duty was reduced, but with prices already cooled, there is no case for a tax cut. The vote on account or interim budget, including revised revenue estimates, is slated to be presented by the Union finance minister on February 1, 2024, in Parliament. The last cut in excise duty on fuel was in May 2022 to mitigate inflation, reducing the central excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre.