Govt's tax collection in H1 2019-20 only 37% of Budget; lowest in 5 years

Govt's tax collection in H1 2019-20 only 37% of Budget; lowest in 5 years

Net collection of both direct and indirect taxes has seen a significant decline; lower tax collection means the Centre may fail to meet its fiscal deficit target of 3.3 per cent of the GDP 

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All these numbers indicate a persistent slowdown in the economy.All these numbers indicate a persistent slowdown in the economy.
BusinessToday.In
  • Nov 1, 2019,
  • Updated Nov 1, 2019 5:34 PM IST

Reflecting an overall decline in economic activity, data from Controller General of Accounts says the net tax collection as of September 30 is lowest in the past five years. The government collected Rs 6.07 lakh crore tax till September, far below its Budget target of Rs 16.49 lakh crore, as per the Controller General of Accounts (CGA) data.

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The Centre had collected 39.4 per cent (Rs 5.8 lakh crore) of the total target of Rs 14.8 lakh crore in 2018-19; 44.2 per cent (Rs 5.4 lakh crore) of total target of Rs 12.2 lakh crore in 2017-2018; 42.5 per cent (Rs 4.4 lakh crore) of total target of Rs 10.5 lakh crore in 2016-2017; and 40.2 per cent (Rs 3.2 lakh crore) of total target of Rs 8.7 lakh crore.

Also read: Tax cuts unlikely! Dismal revenue figures belie income tax cut hopes

The net collection of both direct and indirect taxes has seen a significant decline. The government has collected total corporate tax of Rs 2.49 lakh crore this year so far, which is less than one-third of its full-year target of Rs 7.66 lakh crore. Finance Minister Nirmala Sitharaman's announcement of over 7 per cent reduction in corporate tax to 25 per cent would lead to further fall in tax revenue collection.

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Personal tax collection till September 30 is over one third (Rs 2.13 lakh crore) of the total target of Rs 5.69 lakh crore for the fiscal year. The CGST (central goods and services tax) so far seems to be in sync -- at Rs 2.47 lakh crore -- with the government's full-year estimate of Rs 5.26 lakh crore.

Financial reforms must for India to fulfil $5 trillion economy dream: World Bank Group head David Malpass

Reflecting an overall decline in economic activity, data from Controller General of Accounts says the net tax collection as of September 30 is lowest in the past five years. The government collected Rs 6.07 lakh crore tax till September, far below its Budget target of Rs 16.49 lakh crore, as per the Controller General of Accounts (CGA) data.

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The Centre had collected 39.4 per cent (Rs 5.8 lakh crore) of the total target of Rs 14.8 lakh crore in 2018-19; 44.2 per cent (Rs 5.4 lakh crore) of total target of Rs 12.2 lakh crore in 2017-2018; 42.5 per cent (Rs 4.4 lakh crore) of total target of Rs 10.5 lakh crore in 2016-2017; and 40.2 per cent (Rs 3.2 lakh crore) of total target of Rs 8.7 lakh crore.

Also read: Tax cuts unlikely! Dismal revenue figures belie income tax cut hopes

The net collection of both direct and indirect taxes has seen a significant decline. The government has collected total corporate tax of Rs 2.49 lakh crore this year so far, which is less than one-third of its full-year target of Rs 7.66 lakh crore. Finance Minister Nirmala Sitharaman's announcement of over 7 per cent reduction in corporate tax to 25 per cent would lead to further fall in tax revenue collection.

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Personal tax collection till September 30 is over one third (Rs 2.13 lakh crore) of the total target of Rs 5.69 lakh crore for the fiscal year. The CGST (central goods and services tax) so far seems to be in sync -- at Rs 2.47 lakh crore -- with the government's full-year estimate of Rs 5.26 lakh crore.

Financial reforms must for India to fulfil $5 trillion economy dream: World Bank Group head David Malpass

Read more!
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