The government expects very robust tax revenues for this fiscal year: Revenue Secy
The government expects “very, very strong” tax revenues for the current fiscal year thanks to better-than-expected performance from the business sector, Revenue Secretary Tarun Bajaj said on Wednesday.
Recognizing that the high rates of the GST are having an impact on the automotive sector, Bajaj said that the GST Council will seek solutions to lower the very high rates, remove some items from the exempt category and correct the reverse duty structure. .
âWhen I look at the current first quarter, the results have started to come in and the (tax) revenue has also started to come in. The first advance tax is over, the TDS date comes and goes, I see very, very tax revenue. sturdy that happens.
“It’s not that we’ve raised taxes, or that we’ve become more intrusive and come to you and ask you to pay more taxes … So that’s a very good thing for the economy. Bajaj said at an annual CII session here.
Net direct tax collection during the April to June quarter of the current fiscal year amounted to over Rs 2.46 lakh crore, compared to over Rs 1.17 lakh crore collected during the same period of the previous fiscal year (2020-21).
The collection of net indirect tax revenue (GST and non-GST) during the June quarter of the current fiscal year was Rs 3.11 lakh crore.
Net GST collection during the quarter exceeded Rs lakh 1.67 crore, which is 26.6% of the budget estimate of Rs lakh 6.30 crore for the 2021-22 fiscal year. Net GST collection includes central GST + integrated GST + compensation tax.
Regarding the Goods and Services Tax (GST), Bajaj said that there are many items on which a change in tax rates might be necessary, but that it is first necessary to stabilize the tax rate. diet.
âOn tax rates, I quite agree when you talk about the automotive sector. You talk about two-wheelers, but I would say that on four-wheelers we not only charge 28%, but in my opinion it will continue for a few more years.
âAll of this is having a negative impact on the industry. I admit that, but I don’t know how to fix this problem,â Bajaj said.
He added that although the GST rates have fallen at the macro level, there is a need to look for solutions to lower the rates which are very high.
“The rates have gone down at the macro level, yes, in a few areas they may have gone up. But we have to look for solutions to bring down the rates that are very high and get out some items that are under the exempt items, the tax structures. rights reversed, we have to do that and I’m sure at the next GST board meeting when we give this agenda I’m sure we can get these things, âadded the secretary.
Asking private companies to invest more, Bajaj said animal spirit is lacking in the corporate sector.
âI don’t see a lot of private investmentâ¦ us,â Bajaj said at the CII’s annual session.
He added that “a message I have given to my officers here is not to look at every penny. I can lose a pound if the economy gives me 10 pounds. That’s the attitude I would say the the revenue department would and should be working on this. “
Last week, the government introduced a bill to quash retroactive tax demands on businesses. The bill proposes to abolish the tax rule that gave the tax service the power to go back 50 years and impose capital gains levies wherever property has changed hands overseas but that the business assets were in India.
The 2012 legislation was used to levy a cumulative Rs 1.10 lakh crore in tax on 17 entities, including UK telecommunications giant Vodafone, but substantial punitive action was only taken in Cairn’s case.
The Tax Laws (Amendment) Bill 2021 aims to withdraw tax demands made using retrospective legislation from 2012 to impose the indirect transfer of Indian assets and also to refund the amount paid in these cases without any interest.
Regarding increasing the tax-to-GDP ratio, Bajaj said that raising rates to increase tax collection is not a solution and instead, the tax base should be broadened to bring more people under the tax net.
He said that in India unfortunately there are only certain segments of people who are in the tax net and I think this is one of the reasons why most taxes come from certain classes or categories of taxpayers.
“The increase in fiscal dynamism during the current year is also the result of some quiet measures taken by the IT department,” he said, adding that the government was trying to seize a large part of the informal sector, or not of enterprises and the self-employed. sector by focusing on some of their transactions or activities and trying to capture them.
âThe very fact that we are now matching the GST return to the RTI is forcing a lot of them to pay taxes. This is why I said that without increasing tax rates, fiscal dynamism is increasing.
“I’m actually looking forward to expanding this effort. I don’t want to tax the corporate sector which already pays taxes in the country and contributes a significant portion of the country’s taxes,” he added.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)