Taxation is important for the sector as higher taxes mean higher prices which always has a negative impact on the demand for a specific good.
While this may help the government reduce the gap, there are concerns that an increase in the excise duty will add to the inflationary pressure.
Indirect tax collections in April-December have been good, with service taxes buoyant and excise return to growth.
After the party, the hangover. The centre's finances are running out and the next budget could raise income tax and excise