Direct Tax Collection May Fall Short By Rs 50,000 Crore In FY19, Says Official
The shortfall in direct tax mop-up coupled with lower GST realisation may have implications on fiscal deficit target of 3.4%.
The government is estimated to have witnessed a shortfall of Rs 50,000 crore in direct tax collection target of Rs 12 lakh crore for FY19, a senior finance ministry official said on Tuesday.
The shortfall in direct tax mop-up coupled with lower Goods and Services Tax realisation may have implications on fiscal deficit, which the government has pegged at 3.4 percent of the GDP.
"Direct tax collection for FY19 is around Rs 11.5 lakh crore...," the official said.
The government had revised the direct tax collection target upwards to Rs 12 lakh crore from the original Budget Estimate of Rs 11.5 lakh crore for FY19. It was expecting higher collections from corporate taxes.
The revision was made during the interim Budget for FY20 in February.
The target for GST collection was revised downwards to Rs 6.44 lakh crore from the Budget Estimate of Rs 7.44 lakh crore.
The GST mop-up is also estimated to have missed the revised target. The GST Council had reduced tax rates on several items during FY19.