Experts blame economic slump, lower imports due to rupee fall.

Excise duty collections declined by 8.7 per cent in October this year as economic activity seems to have slowed. This is the second consecutive month the excise collections have slowed.

Also, Customs duty revenues fell for the first time in the current financial year, according to the latest data released by the finance ministry.

The fall in excise duty collections is mainly on account of decline in manufacturing, said a revenue department official. Excise duty collections had grown by 7.5 per cent in October 2007. The department has taken a number of steps to check evasion of excise duty. However, industrial activity has to pick up first, says the official.

Customs duty collections declined 0.9 per cent, compared with 24.7 per cent growth in the same period last year.