The finance ministry has revised upwards the internal targets for both direct and indirect tax collection to overcome the shortfall in excise collections, which is expected to be lower by over Rs 7,000 crore (Rs 70 billion) this fiscal year.

The collection from customs has been revised upwards by Rs 2,000 crore (Rs 20 billion) against its target of Rs 54,150 crore (Rs 541.5 billion) for the current fiscal year.

The internal target for service tax mop-up has also been raised by Rs 2,000 crore (Rs 20 billion) against its target of Rs 14,150 crore (Rs 141.5 billion), while the direct tax collection target has been increased by Rs 5,000 crore (Rs 50 billion).

Ministry officials said the targets had been revised upwards in the wake of taxes showing a buoyancy in collection. Data available with the revenue department for the period ended November 15 indicate that customs duty collection has touched Rs 33,013 crore (Rs 330.13 billion), against a moving target of Rs 33,125 crore (Rs 331.25 billion). The customs collection for the period up to November 15 is also over 66 per cent of the Budget estimate.

Direct tax collection for the same period inclusive of TDS (tax deducted at source) has touched Rs 55,589 crore (Rs 555.89 billion), which is 35.42 per cent higher than the corresponding period last year.

According to data released by the Controller General of Accounts, gross tax collection grew by over 21 per cent to Rs 1,36,238 crore (Rs 1362.38 billion) during April-October this fiscal.

Net tax collection after providing for refunds and states' share was up by 17 per cent at Rs 93,568 crore (Rs 935.68 billion) the first seven months of the current fiscal. Net tax mop up was 40 per cent of the budgeted Rs 2,33,906 crore (Rs 2339.06 billion) for the entire 2004-05.

The robust growth in direct taxes was offset by sluggish growth in indirect taxes especially after government slashed customs duties on petroleum products, steel and edible oil in September to stem inflation.

Income tax collections were up by 55 per cent at Rs 26,874 crore (Rs 268.74 billion) till October this fiscal year, while corporation tax grew by 25 per cent to Rs 25,409 crore (Rs 254.09 billion) in the first seven months.