Budget 2019: Incentives and tax exemptions to corporates grow to Rs 1,08,785 crore
NEW DELHI: The government's revenue foregone in the form of incentives and tax exemptions to corporates in 2018-19 grew 16 per cent to over Rs 1,08,785 crore.
The revenue foregone stood at Rs 93,642.50 crore in 2017-18.
"Though the revenue impact has been quantified in terms of tax expenditure, it does not imply that this quantum of revenue has been waived by the government.
"Rather, these could be seen as targeted expenditure for the promotion of certain sectors," the Budget document said Friday.
In a chapter titled 'Statement of Revenue Impact of Tax Incentives under the Central Tax System: Financial Years 2017-18 and 2018-19', the document said that revenue foregone on account of deduction of export profits of units located in SEZs (section 10A and 10AA) was to the tune of Rs 24,300.22 crore in 2018-19.
Companies take advantage of various concessions to reduce tax liability, while individuals park their funds in tax savings scheme to cut tax burden.
Revenue foregone on deduction of profits of undertakings engaged in generation, transmission and distribution of power was to tune of Rs 15,284.58 crore in 2018-19, compared to Rs 13,156.97 crore in 2017-18, it said.
Similarly, revenue foregone on deductions of profit of industrial undertakings derived from production of mineral oil and natural gas stood at Rs 1,275 crore in 2018-19.