Question : REVENUE FOREGONE

MINISTER OF STATE IN THE MINISTRY OF FINANCE (NIRMALA SITHRAMAN)

(a)& (b): The amount of customs, excise, income and corporate taxes foregone during each of the last three years are given below:

	(Rs. In crore) Category	2011-12	2012-13	2013-14 (Estimated) Customs	236852	254039	260714 Excise	195S90	209940	195679 Corporate Income Tax	81214.3	92636	102606.4 Firms/ associations of 714S.4	5908.9	7120.8 persons / Body of Individuals Individuals	32230	27626.8	33293.2 
 

#The figures are exclusive of net additional tax liability on account of MAT.

The revenue foregone is on account of various tax incentives provided under the Income-tax Act, 1961 to promote savings by individuals, exports; balanced regional development; creation of infrastructure facilities; employment; donations for charity and rural development, etc. Steps have been taken to gradually phase out profit linked deductions in the Income Tax Act, 1961. Further, minimum alternate tax @18.5% has been levied on assessees (companies) having book profit. So far as indirect taxes are concerned, Revenue foregone is defined to be the difference between the duty that would have been payable but for the exemption notification and the actual duty paid in terms of the said notification. The Central Government has the power to issue general exemptions under sub-section (1) of section 5A of the Central Excise Act, 1944 in respect of excise duty and sub section (1) section 25 of the Customs Act, 1962 in respect of customs duty. These exemptions are given in public interest.

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