No tax concessions to counter drought effect, says FM
The government is not planning to come up with any tax concessions even though several districts have been declared drought-affected, Finance Minister Pranab Mukherjee said on Tuesday.business Updated: Sep 08, 2009 20:38 IST
The government is not planning to come up with any tax concessions even though several districts have been declared drought-affected, Finance Minister Pranab Mukherjee said on Tuesday.
“I am not thinking of giving any tax concessions,” he said after inaugurating a two-day conference of the Central Board of Excise and Customs.
The minister hoped indirect tax collection would pick up from the third quarter. There has been a steep 28 per cent decline in collection in the first four months of the current fiscal.
“The trend is a matter of worry and reflects the overall slowdown of the economy and the effect of stimulus measures," he said. Despite the slippage, he felt the government may meet the revenue target of about Rs 2,70,000 crore from indirect taxes in the current fiscal.
Though signs of an economic recovery could be seen, the situation was still far from normal, he said, adding, “The deficient monsoon has raised a spectre of drought in large
parts of India, the government has to be prepared to take ameliorative measures which will also have significant financial implications.”