NEW DELHI: The government is budgeting for a Rs 30,000 crore additional direct
tax collection during the current financial year, providing it with a sufficient buffer to cushion the impact of a reduction in excise duty on petrol and diesel as well as a possible shortfall in GST mop-up.
Sources attributed the better than budgeted collection so far to a wider personal income tax base, along with an improvement in corporate finances. “The advance tax number has been healthier in the first two quarters and with a good monsoon we expect the momentum to continue,” said an officer.
After announcing a reduction in petrol and diesel prices, finance minister
Arun Jaitley said the Rs 10,500 crore hit during the current financial year, will impact the fiscal deficit by 0.05% and the overall target of 3.3% of GDP will be met.
Data released by the tax department showed that gross
direct tax collection of Rs 5.47 lakh crore during the first half of the year was 16.7% higher than the corresponding period of the last year. After budgeting for refunds of over Rs 1 lakh crore, net collection was estimated to be 14% higher at Rs 4.4 lakh crore, which was 38.6% of the budget estimate. Gross collection during the first half of the last financial year had also included a kitty of Rs 10,254 crore under the Income Declaration Scheme, 2016.
Among other revenue sources, collection from GST has been muted although the government is confident that the gap will narrow during the festive season. Similarly,
disinvestment receipts are currently estimated at Rs 9,220 crore, compared to the target of Rs 80,000 crore.
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