Revenue secretary Javed Chowdhury told The Financial Express that the 33.6 per cent increase in revenue collection in April 1999 over the same month in 1998 was ``a sign of revival of the industry.''

``April is no flash in the pan. The economy is responding to the Budget,'' Chowdhury said.

Chowdhury said that in the recent past, in several influential circles, misgivings had been expressed about the likely impact of the political situation on the economy and revenue collections. ``The figures of revenue collections for April this year indicate that despite all apprehensions and misgivings, the industrial economy is buoyant and revenue collections have been excellent,'' he added.

The revenue secretary attributed the marked buoyancy in revenue collection in April 99 which increased to Rs 7,576 crore from Rs 5,670 crore in thesame month last year to the steps taken in the Budget. ``The economy is responding which shows that the Budget is in the right direction,'' he said.

Chowdhury pointed out that to some extent, buoyancy in revenue collection was due to rationalisation of tax structure.On the indirect tax side, increase of 35.8 per cent in April 99 from April 98 was a sign of ``industrial activity picking up,'' said Chowdhury. ``Rationalisation of the structure and new tax rates have started showing results,'' he added.

``The major thing is that excise has picked up despite all the fears of doyens of the industry that the economy is going down. Excise collection in April 99 shows that the manufacturing sector is moving ahead,'' said Chowdhury.

The growth in customs collection of 6.4 per cent in the same month over April 98 indicates that imports were also on the rise, said Chowdhury and added that the growth to an extent was also due to rise in international crude oil prices. He pointed out that there was no indication ofsluggishness in imports, therefore, apprehensions about the downturn in production based on imports were baseless.

``Throughout last year, growth in customs collection was not more than two-three per cent which became zero at the end of the year. Considering this, a rise of 6.4 per cent in the first month of this financial year is very encouraging,'' he said.

Commenting on the extent of impact that rising crude oil prices will have on the customs collections in coming months, the revenue secretary said that the department was trying to assess the situation whether this trend will continue or not.

On the direct tax front, Chowdhury said that recovery of TDS arrears had a major bearing on tax collections. ``Last year, over Rs 500 crore was collected through TDS arrears and detection and collection of arrears is continuing this year. The payment of income tax will become more regular in coming months.'' Talking about the decrease in refund of corporation tax from Rs 776 crore last year to Rs 340 crore thisyear in the month of April, he said this was indicative of no coercion in tax collection.

``The industry's allegation that the department applies pressure to collect taxes is wrong,'' added Chowdhury. He said that revenue collections in April 99 were clearly indicating that the country's economic situation was not at all gloomy.