'Inflation and slow growth to impact revenue collection'

Tuesday, 24 May 2011, 22:49 IST
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New Delhi: The government could miss the revenue collection targets during 2011-12 mainly on account of high inflation and moderating economic growth, a senior Finance Ministry official said. "Inflation can affect domestic demand and thereby adversely affect GDP growth... and consequently our tax collection", Revenue Secretary Sunil Mitra said while speaking at the annual conference of chief commissioners and directors general of income tax. Mitra opposed any roll-back of customs or excise duty on petroleum products and said such an action could also impact indirect tax collection. "Any roll-back of customs duty on crude oil or of excise duty on petroleum products on account of rising crude prices or on account of deregulation of diesel prices will significantly impact our indirect tax collection as well," Mitra said.
Source: PTI