Despite political pressure being built to roll back on the prices of petrol and diesel, the government today gave a clear signal that it would not relent on excise and custom duty changes announced in the Budget 2010-11.

An indication to this effect was given by Revenue Secretary Sunil Mitra who categorically stated that changes in excise and customs duties on petrol and petroleum products would not be taken back.

The government’s viewpoint in this regard was conveyed by Mr Mitra at an ASSOCHAM seminar on issues pertaining to the Budget 2010-11.

Mr Mitra said fiscal consolidation and growth would continue to be on top of the government’s agenda.

He said the excise and custom duty changes on petrol and petroleum products will bring as much as Rs 26,000 crore in the government’s kitty.

Mr Mitra said while the hike in duty changes on petrol and diesel would result in a slightly higher inflation rate in the short-term, it would not fuel inflation in the long-run.

Others who took part in the event included CBEC Chairman V Sridhar and CBDT Chairman CBDT S S N Moorthy.

The Parliament has been rocked for the past few days on the issue of price rise where a determined Opposition wants the government to take back hike in prices of petrol and diesel.

The pressure on the government for such an action is indeed intense as some of the supporting parties of the UPA have joined hands with the BJP and its allies for taking back prices of these two commodities.

Mr Mitra said the effective corporate tax is around 22 per cent and asked the industry to see reason in this before clamouring for rollbacks.

Mr Moorthy said until recently the Finance Ministry has disbursed Rs 42,000 crore of income-tax refunds. He assured that his department would further expedite the process for faster clearances of refund dues in future by creating a Special Monitoring Cell in the CBDT.

He said more than 50 per cent hike has been noticed in the refund benefits to taxpayers.

Mr Moorthy said it would be the endeavour of the Finance Ministry to clear off eligible refunds as early as possible.

UNI