Indirect tax collections have increased by 16.1 per cent to 37,166 crore rupees in May on the back of rise in excise duty and service tax rates. A Finance minister release says, the overall growth in indirect tax revenue collection during the month of May this year is about 16.1 per cent which is 5.7 per cent higher than last month's position. The indirect tax — excise duty, customs and service tax — collection had totalled 32,019 crore rupees in May last year.

During the month, service tax collection grew by 45.4 per cent to 8,607 crore rupees as compared to 5,918 crore rupees in the same month of the previous fiscal. Collection from excise at the same time was up 16.2 per cent at 14,693 crore rupees as against 12,640 crore rupees in May 2011. The customs growth is at 3 per cent though the growth in April was negative. The percentage of growth in revenue during May 2012, after adjustment for deep cuts in duty rate on petroleum and petroleum products made effective from 25th June 2011, reflects the overall growth of 27.6 per cent over the revenue collection in May last year.

During the first two months of the current fiscal, the government garnered 70,211 crore rupees indirect taxes against 61,955 crore rupees in the same period of 2011-12. The progressive growth of indirect taxes during April-May this financial year is 13.3 per cent.