Date:10/02/2007 URL: http://www.thehindubusinessline.com/2007/02/10/stories/2007021006921000.htm

Back Customs duty collections up 34.3% in Apr-Jan '07

K.R. Srivats

Advertisement

New Delhi Feb. 9 The Centre's customs duty revenues continue to be on a roll, with collections during April 1-January 31, 2007, recording a 34.31 per cent increase to Rs 70,872 crore compared with Rs 52,768 crore in the corresponding period in the previous year.

At this growth rate, the Government is expected to comfortably exceed the budgeted customs duty collection target of Rs 77,066 crore in 2006-07.

A senior Finance Ministry official had recently highlighted that capital goods imports were high and that the "high capex cycle was continuing".

Capital goods production

The official had also pointed out that capital goods production in the economy was "doing well".

The Central Statistical Organisation (CSO) has estimated the country's gross domestic product (GDP) growth for 2006-07 at 9.2 per cent, the highest since the year 1988-89.

Excise duty collections

Meanwhile, the Centre's excise duty collections in April-January 2007 increased by 6.02 per cent to Rs 90,677 crore compared with Rs 85,528 crore in the corresponding period in the previous year.

The Budget estimate for excise duty collections for 2006-07 has been pegged at Rs 1,17,967 crore.

At this growth rate, the Centre may find it difficult to meet the Budget estimate unless there is further ramp up in production levels.

Official sources said that the Centre's service tax collections during April-December 2006 stood at Rs 25,662 crore, up by 64.63 per cent over Rs 15,587 crore in the corresponding period in the previous year.