Thursday, July 21 2005 19:19 Hrs (IST) - World Time -

New Delhi: Indirect tax collection was up by a whopping 46% at Rs 39,614 crore in first quarter of this fiscal on the back of double-digit industrial growth, robust imports and a booming service sector.

Excise duty collection grew by 50% at Rs 21,650 crore during April-June compared to Rs 13,711 crore in the year ago period. "We hope to achieve the budget target of Rs 1,18,268 crore this fiscal," a Finance Ministry official told, referring to the buoyancy in industrial production.

Sustained growth in exports and benign inflation is likely to keep the growth in excise collections to a moderate level in the months to come. Last year, excise collections took a beating on account of the cut in duties on a number of items like steel, telecom equipment and IT items by the previous NDA government.

This year, industrial production was up by over 10% in the first two months while duties on a number of items were rationalised in the budget by the UPA government, leading to steep growth in excise collection.

Customs collections were up by 40% at Rs 14,704 crore till June this fiscal from Rs 10,672 crore in the same period last year. Customs collections were estimated at Rs 17,371 crore till July 15, which was 31% of budget target of Rs 55,682 crore this fiscal.

"We will not only attain the budget estimate, but end the fiscal with a much higher level of Rs 60,000-62,000 crore in excise duties this fiscal," the official said.

Though it is widely perceived that high global oil prices pushed up customs collection, the ministry official said, "the increase on account of oil was not much." Rather it was merchandise import growth that pushed up customs collection.

Service tax mop-up was at Rs 3,250 crore till June, a growth of 34% from last year's levels.

The collection 6:ed to improve by another Rs 200 crore as bulk of small taxpayers were yet to pay up. The collection figures only reveal the tax paid by big players like banks, insurance and telecom companies.

"We will over-shoot the service tax target of Rs 17,500 crore this year as well," the official said.