Indirect tax collections grow 2.9% in April-July

Total collection of indirect taxes -- excise, customs and service tax -- stood at about Rs 1,47,750 crore in April-July

Indirect tax collection grew at 2.9 per cent in the April-July period this financial year, mainly due to the decline in excise duty mop-up, reflecting a slump in manufacturing activity, a finance ministry official said.      

Total collection of indirect taxes — excise, customs and service tax — was Rs 1,47,750 crore in April-July, the official said.      

Excise collection dropped 11 per cent during the period  to Rs 48,000 crore, a sign manufacturing output is slowing.      

Customs mop-up was up nine per cent to Rs 56,500 crore during the period, the official said.      

Service tax collection, a new focus area for revenue officials, grew 15 per cent to Rs 43,190 crore during the period.      

In July, total indirect tax collection was Rs 39,000 crore, up 7.3 per cent from a year ago.

Excise duty collection declined 7.4 per cent at Rs 12,797 crore, the official said.      With an aim to widen the service tax net, the government introduced the concept of negative list of taxation. As per it, all services except those in the list, are taxable. The Revenue Department is targeting 12 lakh non-filers and stop-filers of service tax to meet the annual target of Rs 1.81 lakh crore collection from this segment during this fiscal.