New Delhi: Duty cuts on petroleum and steel to rein in inflation decelerated the growth in overall tax collection to 17 per cent at Rs 80,639 crore till August, as against 20 per cent growth till July this fiscal.

However, direct taxes grew by a robust 46 per cent at Rs 21,187 crore in the first five months of 2004-05, as against Rs 14,528 crore in the year-ago period.

Indirect tax collections were up by 9.5 per cent at Rs 59,452 crore till August 2004-05 compared to Rs 54,292 crore in the year-ago period, official sources told in New Delhi today (Sep 13, 2004).

After the duty cuts, the customs collection was up marginally by 4.22 per cent at Rs 19,793 crore in the first five months of this fiscal. The Government aims to collect Rs 54,250 crore in customs in 2004-05.

Customs collections picked up in July but were again lower than expected after Government announced 3-5 per cent cut in duties on petroleum products to douse the spiralling inflation that rose over 7 per cent during August and is now at 8.33 per cent, an official said.

Excise collections grew by 7.83 per cent at Rs 35,563 crore till August this fiscal. The excise duty collection is estimated at Rs 1,08,500 crore in 2004-05.

Service tax collection grew by a phenomenal 76.51 per cent to Rs 4,095 crore till August, they sources said, adding it was over 25 per cent of the budget estimate of Rs 14,150 crore.

On the direct tax front, sources said collections in the first five months were significantly higher, mainly due to 55 per cent growth in income tax at Rs 15,141 crore.