The total indirect tax collection for the first two months of the current fiscal has touched Rs 13,285 crore (Rs 132.85 billion), which is a drop of around 12 per cent from the same period last year.

Combined with the dismal collection of net direct tax, which is Rs 93 crore (Rs 930 million) after May 2003, the Centre's tax kitty is in a worse shape compared with the same period last year.

Government sources said the shortfall in the indirect tax kitty after the first two months of 2003-04 was partly due to a shift in the method of collection of indirect tax from assessees from a fortnightly basis to a monthly one as recommended by the Kelkar committee on indirect taxes.

The committee had said to avoid harassment of the assessees, the excise collection should shift to a monthly mode.

The total excise collections in the first two months, at Rs 5,500 crore (Rs 55 billion), is lower than the corresponding figures last fiscal.

The total customs tax realisation are, however, higher than last year's at Rs 7,185 crore (Rs 71.85 billion). This has been attributed to the appreciation in the value of rupee.

The direct tax collections have nosedived to Rs 93 crore at the end of May as refunds have shot up to Rs 9,792 crore (Rs 97.92 billion) out of a gross collection of Rs 9,886 crore (Rs 98.86 billion).