Contracting industrial production,falling imports and overall economic slowdown took a toll on the indirect tax collection,which grew just 2.9 per cent in the first four months of the current fiscal.
The worst hit has been excise duty collection that slid over 11 per cent during April-July year-on-year. The collection from excise duty stood at Rs 48,025 crore during the period as against Rs 54,117 crore in the same period a year ago.
In July as well,excise duty collection declined 7.4 per cent at Rs 12,797 crore as against Rs 13,823 crore during the same period last year,a government source told The Indian Express. The asking rate of growth for excise duty this year is 11.8 per cent to achieve the Budget target. Customs duty during April-July grew just 9.5 per cent.