24 February Central Excise Day in India- theme, history. Why do we celebrate Central Excise Day?

Central Excise Day 

                                                                 
                                                                   - An article by The Social Organ

Central Excise Day is celebrated on February 24th every year in India to commemorate the establishment of the Central Board of Excise and Customs (CBEC) in 1944. The day serves as a reminder of the importance of excise duty in India's economic growth and development.

Excise duty is a form of indirect tax that is levied on the production, manufacture, and sale of goods. The tax is paid by the manufacturer or producer of the goods, and the cost is usually passed on to the consumer. Excise duty is a significant source of revenue for the government and is used to fund various developmental and welfare programs.

The history of excise duty in India can be traced back to the British era. The British government imposed excise duty on goods like salt, opium, and alcoholic beverages to generate revenue. After independence, the Indian government continued with the system of excise duty and gradually expanded its scope to cover other goods as well.

The Central Board of Excise and Customs was established in 1944 to oversee the collection of excise duty and to ensure compliance with tax laws. The CBEC is responsible for formulating policies related to excise duty, customs duty, and service tax.

Central Excise Day is celebrated to recognize the contributions of the CBEC and the role of excise duty in India's economic growth. On this day, various events and seminars are organized to create awareness about the importance of paying taxes and to promote compliance with tax laws.

The theme for Central Excise Day 2021 was "Building Atmanirbhar Bharat," which emphasizes the need for self-reliance in India's economic development. The theme highlights the role of excise duty in promoting domestic production and reducing dependence on imports.

Excise duty has a significant impact on the manufacturing sector in India. The tax is levied on various goods, including petroleum products, tobacco products, and alcohol. The revenue generated from excise duty is used to fund various developmental programs and infrastructure projects.

Excise duty also serves as a tool for regulating the production and consumption of certain goods. For example, the high excise duty on tobacco products is intended to discourage their use and promote public health. Similarly, the excise duty on luxury goods is intended to reduce their consumption and promote social equity.

In recent years, the Indian government has taken several measures to streamline the excise duty system and promote compliance with tax laws. One of the significant steps taken by the government was the implementation of the Goods and Services Tax (GST) in 2017. The GST replaced multiple indirect taxes, including excise duty, and made the tax system more transparent and uniform.

The GST has had a significant impact on the manufacturing sector in India. The tax has helped to reduce the cascading effect of multiple taxes, which has led to lower costs for manufacturers. The GST has also made it easier for businesses to comply with tax laws by providing a single platform for tax registration and payment.

The GST has also led to an increase in tax revenue for the government. The tax has a wider base than excise duty and is levied on both goods and services. The GST has also made it easier for the government to monitor tax compliance and detect tax evasion.

However, the implementation of the GST has also faced some challenges. The GST has led to a decrease in the revenue of some states that were heavily dependent on excise duty. The GST has also led to some confusion and uncertainty among businesses due to frequent changes in tax rates and procedures.

To address these challenges, the government has taken several measures, including simplifying tax procedures and reducing tax rates for certain goods. The government has also provided support and training to businesses to help them comply with tax laws.

In conclusion, Central Excise Day is an important occasion to recognize the contributions of excise duty to India's economic growth and development. The tax is a significant source of revenue for the government and plays a crucial role in regulating the production and consumption of certain goods.

While the implementation of the GST has posed some challenges, the tax has also brought several benefits, including lower costs for manufacturers and increased tax revenue for the government. The government has taken several measures to address the challenges and promote compliance with tax laws.

On Central Excise Day, it is important to emphasize the need for businesses and individuals to pay their taxes and comply with tax laws. Compliance with tax laws is essential to ensure the equitable distribution of resources and to promote the overall welfare of society.