(Mint)
(Mint)

Direct tax collection may fall short by 50,000 crore in FY19, says official

  • The direct tax collection for 2018-19 is around 11.5 trillion, the official said
  • The shortfall in direct tax collection coupled with lower GST realisation may have implications on fiscal deficit, which the govt has pegged at 3.4% of the GDP

New Delhi: The government is estimated to have witnessed a shortfall of 50,000 crore in direct tax collection target of 12 trillion for 2018-19, a senior finance ministry official said Tuesday.

The shortfall in direct tax collection coupled with lower GST realisation may have implications on fiscal deficit, which the government has pegged at 3.4% of the GDP.

"Direct tax collection for 2018-19 is around 11.5 lakh crore...," the official said.

The government had revised the direct tax collection target upwards to 12 trillion from the original Budget Estimate of 11.5 trillion for 2018-19. It was expecting higher collections from corporate taxes.

The revision was made during the interim Budget for 2019-20 in February.

The target for GST collection was revised downwards to 6.44 trillion from the Budget Estimate of 7.44 trillion.

The GST collection is also estimated to have missed the revised target. The GST Council had reduced tax rates on several items during 2018-19.

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