The slow pace of tax collection amidst economic slowdown has increased the tension of the Modi government. This is the reason that there is a new churning to be done by the government to speed up tax collection. This information has been given by Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan. Along with this, he also indicated to reduce corporate tax.
According to news agency PTI, Akhilesh Ranjan said that the increase in direct tax collection is less than expected. CBDT will work afresh on its strategy in this regard. Let us know that the government has set a target of direct tax collection of Rs 13.35 lakh crore in the current financial year. Of this, Rs 7.66 lakh crore is to be raised from corporate or company tax and Rs 5.69 lakh crore from income tax.
Corporate tax will be reduced
At the same time, on the reduction of corporate tax, Akhilesh Ranjan said that the government is looking into the matter. He said that the rate of corporate tax has to be reduced today or tomorrow. Ranjan’s statement came at a time when Finance Minister Nirmala Sitharaman recently stressed the need to reduce corporate tax.
What the figures say
In the period from April to September 17 of the current financial year, the direct tax collection has increased by 4.7 percent to Rs 5.50 lakh crore, from Rs 5.25 lakh crore in the same period of the previous financial year. Out of this tax collection, advance tax collection is up by 7.3 percent at Rs 2.20 lakh crore. In the same period of last financial year, advance tax collection was Rs 2.05 lakh crore.
However, according to the government’s goal, this pace is slow. The government has set a target of 15% increase in direct tax collections for the entire fiscal year, in addition to 17.5% for direct tax. Please tell here that there are few days left for the second quarter of the current financial year to end.