New Delhi, July 14 (PTI): The government is confident of meeting the 10 per cent targeted growth in indirect taxes at about Rs 2,80,000 crore on the back of a robust economic growth and higher revenue mop-up from petroleum products, S. K. Bharadwaj, a member of the Central Board of Excise and Customs (CBEC), said.

“There is no need for pessimism. With the economy booming and an expected higher demand for petroleum products, the revenue buoyancy would be 10 per cent,” Bharadwaj said after a post-budget meeting in Assocham here today.

Although the reduction in excise duties in petroleum products days before the budget would cost the exchequer about Rs 2,400 crore, he said the revenue growth would be more than 10 per cent.

Since a major chunk of excise and customs duties come from petroleum products, there is apprehension that the government might have some shortfall in revenue on this account after the duty cut.

However, the CBEC official said domestic output and imports of petroleum products would go up with a growth in economy, which will yield a higher revenue to the government.

Bharadwaj said CBEC also hopes to recover part of the Rs 4,000-5,000 crore hit that it had taken after the excise duty on steel was cut from 16 per cent to 8 per cent in the interim budget.