The Value Added Tax (VAT) Service achieved its core target for 2006 but fell short slightly in the collection of Excise. Sources at the VAT Service told Joy Business Report that the Service collected ¢2.79 trillion in VAT and National Health Insurance Levy (NHIL) as against the target of ¢2.74 trillion. The Service however could not attain the target of ¢880 billion it set for Excise duties and raised ¢747 billion. The shortfall in Excise collections has been explained as resulting from the punitive nature of the tax and also because various anti smoking and drinking campaigns have affected demand for cigarettes and alcoholic drinks. The sources however said that outstanding returns which government had promised to pay on behalf of three public institutions; Ghana Telecom, Electricity Company of Ghana and the Volta River Authority will enable the VAT Service exceed its over all (VAT, NHIL and Excise) total target for 2006.