Indirect tax collection during the first five months of this fiscal rose 27 per cent to Rs. 1.81 lakhs corore from Rs. 1.43 lakh crore in the year-ago period. The 27 per cent increase in indirect tax collection is mainly on account of hike in rates of excise and services in the Budget sources told PTI.
Service Tax collection showed an impressive increase of 41 per cent at Rs. 47,775 corore against Rs.33,907 crore in April-August 2011-12. The mop-up from excise duty was 25 per cent higher at Rs.69,025 crore. Customs duty collection was up 20 per cent at Rs.64,920 crore during the five month period.
The government had hiked the service tax and excise levies to 12 per cent for the current fiscal in the budget, from 10 per cent. The Finance Ministry has moved to a new regime of Service Tax based on negative list from July 1, 2012.