Tax officials may ask for 6% reduction in collection target in Budget 2019
Tax officials are likely to ask for a reduction up to 6 per cent in their collection target in the full Union Budget for 2019-20, compared to what was given in the interim Budget. That 6 per cent would translate into a reduction of Rs 1.5 trillion. The new finance minister, Nirmala Sitharaman, has already expressed concern over revenue collection at interactions with officials. The cuts are being sought by both the direct and indirect tax departments. Direct tax officials are going to ask for a cut in their collection target by Rs 60,000-70,000 crore or 4.3-5.1 per cent of the figure in the interim Budget for 2019-20, for overall yearly growth of 15 per cent. If approved, the direct tax collection target would be revised at close to Rs 13 trillion, from Rs 13.8 trillion in the interim Budget. As for indirect taxes, the central goods and services tax (CGST) growth target might be cut by Rs 70,000-80,000 crore in the full Budget or 11.5-13 per cent of the interim Budget if on...