“If the economy is growing by 8.5-9 per cent and the manufacturing sector is growing by double-digits, excise too must grow at the same rate,” Chidambaram said while inaugurating a new electronic accounting facility for excise and service tax.

While receipts from corporate tax, service tax and customs have showed robust growth during April-January 2006-07, excise collections have been sluggish at 7.8 per cent. Chidambaram said that the total excise duty receipts might fall short of the targeted Rs 1,19,000 crore rupees for fiscal 2006-07.

“I am inclined to believe that there is sizeable evasion in excise. Evading duty does not pay in the long run,” he said. “I would urge industry to pay excise just as they pay corporate and service taxes.”

The government is targeting 17 per cent growth in tax receipts during 2007-08 to help reduce the fiscal deficit to 3.3 per cent of gross domestic product (GDP) from the 3.7 per cent recorded in 2006-07.

Tax collections were up 36 per cent to Rs 2,56,000 crore during the first 10 months of 2006-07. Corporate tax receipts grew by 50 per cent, customs duty 33.5 per cent and income tax by 28 per cent.

Chidambaram also made it clear that all corporates that are liable to pay union excise duty and service tax of at least Rs 50 lakh in a year will have to do so on electronic mode from next fiscal. The threshold of Rs 50 lakh would be subsequently removed and everybody would have to pay excise duty and service tax online in due course.

All corporates are already required to pay their corporate income tax online.

Govt may ban cement exports: Nath

NEW DELHI: The government may consider banning cement exports to help bring down prices, commerce and industry minister Kamal Nath said on Wednesday.

“We will look at that (banning cement exports) if it helps bring down cement prices,” Nath said. Cement makers have said that they are unwilling to lower prices following a duty increase last week, but have pledged to raise capacity as the government battles to tame inflation.