Better-than-expected excise duty collections and a strong showing the service tax front boosted indirect tax collections by 12 per cent on a sequential basis in December 2011. The tax kitty stood at Rs 34,819 crore, against Rs 31,082 crore in November 2011. On a year-on-year basis, indirect tax collections in December 2011 grew 15.9 per cent, higher than the 6.37 per cent in November.

Excise duty collection growth of 9.7 per cent in December was the best in the third quarter. This has raised hopes that industrial output may have rebounded in November from a sluggish performance in October. The Index of Industrial Production data for November 2011 will likely be released on Thursday.

“The overall growth in indirect tax collection in December has been positive news for us. For April-December, the growth has been good, at 16.1 per cent, which has come despite our giving away Rs 36,000 crore in petroleum duties so far this fiscal”, Mr S.K Goel, CBEC Chairman, told reporters here. However, Mr Goel said it was difficult to conclude that the latest excise collection performance signalled a rebound in industrial output in November or December.

The Central Board of Excise and Customs is yet to come to grips on what led to a 6.5 per cent decline in excise collections in November, although the top brass had meetings with all chief commissioners.

The Centre's Customs duty collections in April-December 2011 grew 13.8 per cent to Rs 1,12,670 crore (Rs 98,992 crore), partly aided by the fall in rupee, Mr Goel said.

> krsrivats@thehindu.co.in

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