Direct tax mop-up may beat budget estimate by 30%

Income Tax

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• Oct 22, 2022
  The Centre’s direct tax revenues may rise 25-30% on year, allowing it to net an additional Rs 2.5 trillion over the budget estimate (BE) after the mandatory devolution to states, a senior finance ministry official told FE. The extra receipts would give a cushion to the government, which is looking at an additional subsidy expenditure of Rs 2.8 trillion over the budgeted level, the official said.The indirect tax collections will also see a marginal increase over the BE, despite the excise duty cuts on petrol and diesel announced in May.

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