homeeconomy NewsTax revenue projections difficult to meet, revenue department tells parliamentary panel
Tax revenue projections difficult to meet, revenue department tells parliamentary panel
In what could raise fresh concerns over the government's estimates and hope to meet the fiscal deficit and other revenue receipt targets, the revenue department is understood to have told the parliamentary panel on finance that "it looks difficult to meet" the current projections.
In what could raise fresh concerns over the government's estimates and hope to meet the fiscal deficit and other revenue receipt targets, the revenue department is understood to have told the parliamentary panel on finance that "it looks difficult to meet" the current projections.
According to government sources," the Central Board of Direct Taxes (CBDT) informed the panel that tax revenue projections are difficult to meet as net tax growth in the first six months has shown only 2 percent growth."
According to the recent data, the corporate tax collection has shown a growth of just 0.5 percent up to October as against a target of 15.4 percent for FY20. Personal income tax by 5 percent as against 22 percent estimated for the fiscal.
The budget has pegged the direct tax collections at Rs 13.35 lakh crore.
Similarly, sources told CNBCTV18, "The indirect tax board -- CBIC too has informed the panel that it won't be able to meet the projected indirect tax targets due to poor economic activity."
However, CBIC also informed the panel that the government is taking measures to boost GST Collections, " the government has formed an officers committee and Group of Ministers panel headed by Bihar Deputy Chief Minister, Sushil Modi, that will soon come up with suggestions to augment Revenue collections. "
The parliamentary panel has asked both the tax departments to submit realistic future projections in the next meeting of the panel, sources added.
CNBC-TV18 in September had first reported that the government expects close to Rs 2 lakh cr of tax shortfall this fiscal.
The poor economic situation could pull down the overall direct tax collections by approximately Rs 1.2 lakh crore, inclusive of the hit on account of corporate tax reduction.
“The government expects close to Rs 1.2 lakh crore shortfall in its direct tax collection. Of this, around Rs 80,000 crore more due to the new tax rate structure and the remaining on account of various direct taxes such as personal income tax collections, etc.,” multiple sources told CNBC-TV18, adding that these are the rough estimates.
Along with this, indirect taxes are set to be hit too. The government expects close to Rs 60,000 crore shortfall this fiscal, sources had earlier told CNBCTV18.
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