Indirect tax collection down 5 pc

Indirect tax collections dipped five per cent in October 2008 reflecting the impact of the global financial crisis on Indian industry. Excise and customs, typically collected from businesses fell during the month. Collections fell from Rs 19,646 crore in October 2007 to Rs 18,664 crore last month, according to data released by the Finance Ministry today.

The news comes a day after the government said that exports plunged by 15 percent in the month of October due to falling demand in the Western markets. August also recorded a dismal industrial growth rate of 1.3 per cent.

The realisation from excise decreased by 8.7 per cent to Rs 9,265 crore from Rs 9,353 crore a year ago, while the collection from customs saw a decline of 0.9 per cent to Rs 9,399 crore as compared to Rs 10,293 crore during the same period last year.

However, for April-October, excise duty collection was Rs 66,621 crore in October compared to Rs 57,833 crore a year ago. Meanwhile, total service tax collected in April-October stood at Rs 29,867 crore compared to Rs 23,204 crore during the same period last year.