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Low direct tax mop-up another big pain point for Modi government

Alarmed by the dismal growth in direct tax revenues, the government may tweak the way it collects taxes in a bid to raise more money.

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NEW DELHI: Alarmed by the dismal growth in direct tax revenues, the government may tweak the way it collects taxes in a bid to raise more money.

Data for the April-August period show 4.7% expansion in direct tax mop-up, which is way below the full-year growth target of 17.5%.

Total direct tax collection was Rs 5.5 lakh crore till September 17, against Rs 5.25 lakh crore collected during April-September last year.

Officials said that till now, they were looking at ways to boost mop-up without coercive steps.

More so after businessmen started complaining of “tax terrorism” after the suicide of a Bengaluru-based entrepreneur recently.

“Collections are below expectations. There is a drop in both corporate and income tax. This is a matter of concern and we will rework our strategy to improve tax collection. The department is likely to meet in the last week of this month on the issue,” a senior CBDT official told this paper.

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  • No NPA tag for MSMEs till March 2020.

  • Banks to hold loan melas in 200 districts from October 3 to 7; 200 more districts to be covered October 11 onwards.

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