The Central exchequer has lost tax revenue worth nearly Rs 1.84 lakh-crore in two financial years due to lower rate of corporate tax announced by the government.
The estimated shortfall due to this move was Rs 87,835 crore in 2019-20 and 96,400 crore in 2020-21, noted a report by a Parliamentary panel. The figures for 2021-22 have not been revealed but are estimated to be over Rs 1 lakh-crore.
There has also been a decline in the targets of gross and net tax collections at the Budget Estimates and Revised Estimates stage with actual even before the concessional tax rate for corporate was announced. The actual were at a healthy 100.7 per cent above the gross tax collection in 2016-17 and 101.2 per cent above the net tax collection. But these figures declined to 98.6 per cent and 97.9 per cent, respectively, in 2017-18. The intake declined further to 92.5 per cent and 88.7 per cent in 2018-19. It was 92.9 per cent and 90.1 per cent in 2019-20.
Meanwhile, Delhi Chief Minister Arvind Kejriwal said that taxpayers are betrayed when their tax money is used to waive off loans of “rich friends”.