Excise duty mop up growth slows down in Q1 - July 15, 2008

The Centre''s excise duty mop up went up by 2.8 per cent in the first quarter of the current fiscal, lower than the 6.9 per cent growth recorded in the first quarter of 2007. The excise collections in April-June 2008 was Rs 25,882 crore, a 2.8 per cent hike over excise collections of Rs 25,183 crore in the same period last year. Excise duty collections in April-June 2007 stood at Rs 25,183 crore, reflecting a 6.9 per cent increase over collection level of Rs 23,560 crore during April-June 2006. In June 2008, the Centre''s excise duty collections were Rs 9,889 crore compared with Rs 9,335 crore in the same month last year.

For 2008-09, the Centre has pegged the excise duty budget estimate at Rs 1,37,874 crore, which represented an increase of 5.9 per cent over the budget estimate of Rs 1,30,220 crore for 2007-08. On the other hand, the Centre''s customs duty collections continued to be buoyant on the back of higher international oil prices and weakening rupee against the US dollar. In April-June 2008, the Centre''s customs duty collections grew 20.9 per cent at Rs 28,459 crore compared with Rs 23,540 crore. The growth rate in customs duty collections in the first quarter of 2007-08 was 19.63 per cent. Customs duty collections in June 2008 stood at Rs 9,236 crore (Rs 8,171 crore). Meanwhile, service tax collections grew 33.6 per cent in April-May 2008 at Rs 9,774 crore (Rs 7,314 crore). Service tax collections in May 2008 stood at Rs 3,653 crore (Rs 2,963 crore)