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India will “handsomely exceed” indirect tax revenue target, says Mukherjee

08 June 2012

Matthew Gilleard - ITR


The Indian government is confident that the indirect tax collection target of $90 billion in 2012-13 will be met, says finance minister Pranab Mukherjee.

The figure of Rs4.99 trillion ($90 billion) represents a 27% growth from last year’s target of Rs3.94 trillion, which the Indian government fell narrowly short of. Mukherjee is so confident in achieving the target that he has even said he expects the target to be surpassed.

“I am confident that the department would leave no stone unturned in ensuring that the targets for the current year are not only met, but handsomely exceeded,” said Mukherjee.

His confidence may be questioned considering disappointing fourth quarter GDP numbers, but Pratik Shah, head of indirect tax at SKP Group, said he understands Mukherjee’s optimism.

“Despite disappointing Q4 GDP numbers, various positive factors within the Indian economy may help with attaining the steep target for fiscal year 2012-13,” said Shah, who believes Mukherjee’s confidence is based on a variety of favourable economic and geographic reasons.

“Some of the factors...



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