Indirect tax collections comprising excise, customs and service tax stood at about Rs1.54 lakh crore in the first four months of 2014-15 fiscal, as against Rs1.48 lakh crore in the corresponding period a year ago, finance ministry said in a statement.
The growth at 3.9 per cent is far less than 25 per cent annual increase envisaged in the Budget for the full 2014-15 fiscal.
Excise collection contracted 0.4 per cent during the quarter to over Rs 48,195 crore.
Customs mop up has declined by 2.2 per cent to over Rs 55,305 crore during April-July period against Rs 56,526 crore in the same period a year ago.
However, service tax collection, which has become a new focus area for revenue officials, grew by 16.4 per cent to Rs 50,850 crore during the period, the official said.
With an aim to widen the service tax net, the government had introduced the concept of negative list of taxation. As per it, all services except those in the negative list, are taxable.