The government will impose taxes on seven new services from July 1 in a bid to increase revenue collections and curb a runaway fiscal deficit.

A government statement said on Friday service tax will be levied on commercial training and coaching centres, technical testing and analysis, maintenance and repair services, commissioning and installation services, business auxiliary services, Internet cafes and franchise services.

It said the decision to impose service tax was part of the announcements made in the Union Budget for 2003-04 (April-March) in February but did not give further details.

The statement said business services provided by call centres and medical transcription centres will be exempted from service tax.

However, tax will be collected from all foreign exchange brokers including money-changers and foreign exchange dealers.

Service tax is being collected presently from corporates and non-banking financial institutions and not from individual foreign exchange dealers and money-changers.

The statement said services extended at all ports will now be brought under the tax regime. Earlier, only services at major ports were paying the tax.

India aims to control its federal fiscal deficit to 5.6 per cent of gross domestic product in the year to March 2004, compared with 5.9 per cent in the past year.