Indirect tax collection likely to be Rs 2.57 lakh cr

Led by buoyant Customs collection, the indirect tax mop-up is likely to be around Rs 2.57 lakh crore for 2009-10, higher than the revised estimate of Rs 2.44 lakh crore.

Sources in the finance ministry said collections from Customs stood at over Rs one lakh crore against the revised estimate of Rs 84,477 crore for the previous financial year.

Excise collection was also marginally higher at Rs 1.04 lakh crore, compared with the revised estimate of Rs 1.02 lakh crore, they said.

Service tax collection may, however, be short of the target. The mop-up from services sector has fallen short by about Rs 5,000 crore, at Rs 53,000 crore, lower than the revised estimate of Rs 58,000 crore, officials said.

The initial Budget estimate for total indirect tax collections was Rs 2.69 lakh crore, which was later revised to Rs 2.44 lakh crore.

Customs rode on revival in imports. After falling for 11 months since January 2009, imports rose by 27 per cent last December, 35 per cent in January and 66 per cent in February, mainly on the back of impressive industrial activity.

Industrial production grew by 17.6 per cent in December last year and 16.7 per cent in January this year, leading to higher imports.

Customs on crude oil was raised to 5 per cent from zero per cent in the Budget on February 26.