Indirect tax mop-up increases by 18%

Collection of indirect tax, comprising excise and Customs, has registered a healthy 18 per cent growth both for July and the April-July period with collections of Rs 16,258 crore for the month and Rs 59,457 crore for the cumulative period.

The growth is despite a mere 7 per cent increase in excise collections in July at Rs 9,193 crore compared with Rs 8,596 crore last year. Collection in April-July increased by 8 per cent to Rs 32,754 crore against Rs 30,387 crore during April-July 2005-06.

Customs collections continue to be buoyant at Rs 26,703 crore against Rs 19,752 crore in April-July 2005-06, up 35 per cent. Collections in July were around 38 per cent higher at Rs 7,065 crore compared with Rs 5,097 crore last year.

The issue of slower growth in excise was likely to be discussed at the chief commissioner's conference to on August 30.Service tax collections figures available till June also show growth of over 60 per cent. Collections during June rose 67.5 per cent to Rs 3,010 crore compared with Rs 1,797 crore in June 2005.

The cumulative growth in the first quarter was Rs 7,173 crore against Rs 4,390 crore during April-June 2005-06, an increase of 63 per cent.