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The Government’s Corporate Tax Move is Bold. But There is a Fiscal Risk

To boost growth, the government, on Friday, decided to risk the only engine of the tax system that has performed lately — corporate tax.

published by
Hindustan Times
 on September 21, 2019

Source: Hindustan Times

Private consumption, the engine of the economy that had been firing most consistently in recent years, is losing steam. Two other engines — investments and exports — seem to be slowing down again after a brief period of robust activity. The result is 5% growth.

To boost growth, the government, on Friday, decided to risk the only engine of the tax system that has performed lately — corporate tax. In 2018-19, the actual collection (provisional) of corporate tax was Rs 6.63 lakh crore, against the budgeted Rs 6.21 lakh crore. The collections under other major taxes were much lower than budgeted.

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This article was originally published in the Hindustan Times.

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