Revenue Secretary Tarun Bajaj said that the government is expecting a very strong tax revenue in the current financial year on the back of better-than-expected performance of the corporate sector.
Revenue Secretary Tarun Bajaj said that the government is expecting a very strong tax revenue in the current financial year on the back of better-than-expected performance of the corporate sector. Recognizing that, high rates of GST are affecting the automotive sector. Bajaj said the GST Council will look at solutions to reduce rates that are too high, exclude certain items from the tax-exempt category and fix the inverted duty structure.
“When I look at the current first quarter, results have started coming in and (tax) revenues have started coming in,” he said at an annual session of CII here. The first advance tax is over, TDS dates are coming and going, I see a very strong tax revenue coming in.
Companies performing better than expected
Bajaj said, it is not that we have increased taxes, or we are interfering more and we are asking you to pay more tax… The good thing behind this is that maybe the corporate sector is our expectation. is performing better than So this is a very good thing for the economy.
Collection increased in the first quarter
The net direct tax collection in the April-June quarter of the current financial year stood at over Rs 2.46 lakh crore, as against Rs 1.17 lakh crore during the same period of the previous financial year (2020-21).
Net indirect tax (GST and non-GST) tax collection in the June quarter of the current financial year was Rs 3.11 lakh crore. Net GST collection during the quarter was over Rs 1.67 lakh crore, which is 26.6 per cent of the budget estimate of Rs 6.30 lakh crore for the entire 2021-22 financial year. Net GST collection includes Central GST, Integrated GST and Compensation Cess.
Need for change in GST tax rates
Regarding GST, Bajaj said that there are many items on which tax rates may need to be changed, but first the system needs to be stabilized. On tax rates, when you talk about the automotive sector, I am very much in agreement. You are talking about two wheelers but I would say that on four wheelers we not only levy 28 per cent tax but also cess which is very high and as I see it, it will be for few more years. Will continue till
The Revenue Secretary said, all these have a negative impact on the industry. I accept it, but I don’t know how to solve this problem. He further said that though the GST rates have come down at the macro level, there is a need to come up with a solution to bring down the very high rates which are too high.
Bajaj also appealed to private companies to invest more and said that these companies should tell what cooperation they want from the government.
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