Tax collection misses target by a wide margin; inches up 4.7% in April-September
The Economics Times
September 18, 2019
MUMBAI: As against a steep 17.5
percent higher tax collection budgeted for the full year, the government could
mop-up only 4.7 percent more so far this year, with the direct tax kitty
growing to Rs 5.50 lakh crore as of September 17, up from Rs 5.25 lakh crore a
year-ago.
The lower mop-up reflects the deepening slump in demand and overall growth. In the first quarter the GDP slowed to a six-year low of 5 percent.
Of the Rs 5.50 lakh crore collections, advance tax rose a tepid 7.3 percent to Rs 2.20 lakh crore from Rs 2.05 crore, according to sources at the taxation department.
The lower mop-up reflects the deepening slump in demand and overall growth. In the first quarter the GDP slowed to a six-year low of 5 percent.
Of the Rs 5.50 lakh crore collections, advance tax rose a tepid 7.3 percent to Rs 2.20 lakh crore from Rs 2.05 crore, according to sources at the taxation department.
Of the
Rs 5.50 lakh crore collections, advance tax rose a tepid 7.3 percent to Rs 2.20
lakh crore from Rs 2.05 crore, according to sources at the taxation department.
It can be noted that the budget had set a direct tax mop-up target of 17.5 percent for the full year, while the same for indirect taxes are set at 15 percent.
It can be noted that the budget had set a direct tax mop-up target of 17.5 percent for the full year, while the same for indirect taxes are set at 15 percent.
"Total
tax collection till date is Rs 5.5 lakh crore compared to Rs 5.25 lakh crore in
the same period last year. Net tax collection is around Rs 4.5 lakh crore as
compared to Rs 4.25 lakh crore as of date," a senior tax official told PTI
on Wednesday.
April-September advance tax collection rose to Rs 2.20 lakh crore from Rs 2.05 lakh crore, the official said, adding of this advance corporation tax rose only 3.5 percent while the personal income tax paid in advance rose 7.5 percent.
April-September advance tax collection rose to Rs 2.20 lakh crore from Rs 2.05 lakh crore, the official said, adding of this advance corporation tax rose only 3.5 percent while the personal income tax paid in advance rose 7.5 percent.
The
numbers are disturbing for the government as it has already used up as much as
77 percent of its budgeted fiscal deficit for the full year by July itself.
This is 1.4 percentages point higher than the comparable period last year.
Fiscal deficit crossed 77 percent of the annual target in July at Rs 5,47,605 crore, against a target of Rs 7,03,760 crore for the full year.
Fiscal deficit crossed 77 percent of the annual target in July at Rs 5,47,605 crore, against a target of Rs 7,03,760 crore for the full year.
Total
expenditure till July stood at Rs 9,47,278 crore against a fiscal target of Rs
27,86,349 crore. Total receipts for the month stood at Rs 3,99,673 crore
against the fiscal target of Rs 20,82,589 crore.
Advance tax is filed by the 15th of the third month of every quarter. Assessees falling under the ambit of advance tax payment are required to pay 15 percent of the evaluated tax liability in the first quarter, 25 percent in the second and the rest in equal installments in the remainder of the year.
Advance tax is filed by the 15th of the third month of every quarter. Assessees falling under the ambit of advance tax payment are required to pay 15 percent of the evaluated tax liability in the first quarter, 25 percent in the second and the rest in equal installments in the remainder of the year.
In FY19, direct tax collection was Rs 50,000 crore short of the Rs 12 lakh crore target.
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