Indirect tax mop-up dips 21 per cent

All the three components of indirect tax — excise, customs and service tax — have posted negative growth in collections.

Customs declined the most, by 31.8 per cent at Rs 45,412 crore, Excise duty collection was also down by 18.8 per cent at Rs 52,566 crore, a finance ministry statement said.

The sector, which is a significant contributer to the Indian economy, fetched 5.4 per cent lower revenue at Rs 28.926 crore.

Analysts attribute the fall in indirect tax collections to both stimulus packages, which cut excise duty by 6 per cent and service tax by two per cent, as well as economic slowdown.

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