Both direct and indirect tax departments are reportedly seeking a cut in collection targets
Tax officials might ask for a reduction of up to six percent, or Rs 1.5 lakh crore, in their income tax collection target in the upcoming Budget on July 5, according to a report by The Business Standard.
Both direct and indirect tax departments are seeking slash in collection targets, the report said.
Finance Minister Nirmala Sitharaman has already expressed concerns over tax collections to officials.
Moneycontrol could not independently verify this news report.
Direct tax officials will request the Finance Ministry to cut its target to Rs 60,000-70,000 crore, or 4.3-5.1 percent of the target set in the interim Budget, the report stated. This would lower the collection target to Rs 13 lakh crore from Rs 13.8 lakh crore. For FY19, direct tax collection was Rs 11.18 lakh crore, falling short of the Rs 12 lakh crore target.
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The target for Central Goods and Services Tax (CGST), which comes under indirect tax, might be slashed by Rs 70,000-80,000 crore. This would lower it by 11.5-13 percent from the target set in the interim Budget.
The economy has seen a slowdown, with GDP growth slipping to 5.8 percent in the last quarter of FY19.
The government is expected to make crucial tax reform announcements during the Budget, according to media reports.
