Indirect tax mop up zooms 45 pc during Apr-Aug.

New Delhi, Sep 14 (PTI) The indirect tax collection in the first five months of the current fiscal rose by over 45 per cent to Rs 1.24 lakh crore, indicating an upswing in industrial activity.

"Indirect tax collections from customs, central excise and service tax at all India level has increased more than 45 per cent during April-August, 2010 compared to its corresponding period, April-August 2009. Total revenue collections were Rs 1,24,170 crore during this period," an official statement said today.

Higher tax collection, according to sources, is also on account of withdrawal of tax incentives also called stimulus by Finance Minister Pranab Mukherjee in his budget for 2010- 11.

Out of Rs 1.24 lakh crore, the government has mopped up Rs 51,866 crore through customs collection, an increase of 66.5 per cent during the five-month period ended August.

Similarly, revenue from central excise increased to Rs 49,672 crore during April-August, up 41.7 per cent from realisation during the corresponding period last fiscal.

The revenue collections from service tax during April- August 2010 was Rs 22,632 crore, an increase of 19.8 per cent compared to the corresponding period in the previous year.

The robust tax collections come in the backdrop of 13.8 per cent industrial growth in July, which is nearly double the rate of 7.2 per cent recorded during the corresponding month last year.

Industrial growth stood at 11.4 per cent during the first four months of this fiscal against 4.7 per cent in the year-ago period.

The government in the budget estimated to collect Rs 7.46 lakh crore as taxes during this fiscal. While Rs 3.16 lakh crore of this are expected to be realised from the indirect taxes front, the target of direct tax realisation has been fixed at Rs 4.3 lakh.

While the indirect taxes include excise, customs and service tax, the direct taxes are mainly corporate tax and personal income tax.

Mukherjee in the budget raised excise duty from 8 to 10 per cent and also increased duties on crude oil and petroleum products. The minister, however, did not raise the service tax rate retaining it at 10 per cent.

The overall economic growth in the current fiscal is estimated at 8.5 per cent, up from 7.4 per cent in the previous fiscal.

Source : news.in.msn.com