Tax Collection Rise in India
December 23, 2013 Taxation in India
NEW DELHI – While the total amount of taxes collected in India is on the rise, the growth is below expectation, and may ultimately slow the government’s plan to lower the national deficit over the course of the current fiscal year.
In a statement issued on December 21nd the Finance Ministry of India confirmed that over the first 9 months of the year, from April until December 20th, the collection of direct taxes in the country rose by 13.7 percent, compared to the same period last year, reaching a total of INR 4.13 trillion.
The total collection of revenues was made up primarily of nearly INR 2.6 trillion worth of corporate income taxes, INR 1.4 trillion of individual income taxes, INR 34.27 billion of wealth tax, and INR 7.52 billion of securities transaction tax.
The government’s goal set earlier this year for the growth in tax revenues over the current fiscal year is 18.07 percent, reaching a total of INR 6.68 trillion, and in order for the total collections to meet the end-of-year target, the tax-take for the rest of the year must grow by an average of 26 percent.
Taking into consideration that the national budget deficit has already reached 84 percent of the target level of 4.8 percent, taxation experts have already indicated that the government may not be able to reach its fiscal plans for the year.
Photo by: balu