Another factor contributing to the decline may well be the excise duty rate being cut to 14 per cent from 16 per cent from March 1 this year.
Excise duty collections need to grow at around 10 per cent to reach the budget estimate of Rs 1,37,874 crore for 2008-09, as against about Rs 1,25,000 crore actually collected in 2007-08.
Customs duty collection however, registered a 25 per cent growth at Rs 9,018 crore in the first month of fiscal 2008-09, as compared to Rs 7,221 crore in the same month in 2007-08.
Indirect taxes consist of excise duty, customs duty and service tax. Service tax collections data for the month is yet to be announced.
