As of September 17, 2019, the direct tax collection of the government stood at Rs. 5.50 lakh crore, which is a higher mop-up by just 4.7% so far this year. In a year-ago period, the direct tax kitty was at Rs. 5.25 lakh crore. Notably, the budget had laid-down a direct tax collection target at 17.5% for the full year, while in case of indirect taxes it is pegged at 15%.
Of the total direct tax collection of Rs.5.5 lakh crore, collection of advance tax surged at a moderate rate of 7.3% to Rs. 2.2 lakh crore from the earlier Rs. 2.05 lakh crore as per sources at the tax dept.
The lower rate of growth in tax collection signals the underlying crisis of slump in overall economy and demand. For the first quarter of the current fiscal year, the GDP narrowed down to a dismal 5%, which is a 6-year low figure.
"Total tax collection till date is Rs 5.5 lakh crore compared to Rs 5.25 lakh crore in the same period last year. Net tax collection is around Rs 4.5 lakh crore as compared to Rs 4.25 lakh crore as of date," a senior tax official told PTI on Wednesday.
The increase in corporation tax during the period under review also came in at a tepid 3.5% while personal income tax paid in advance rose 7.5%.
The tax collection level so far is worrisome for the government given the fact that it has already breached 77% of the annual fiscal deficit target of Rs 5,47,605 crore in July, against a target of Rs 7,03,760 crore for the full year.
Total expenditure till July came in at Rs 9,47,278 crore in comparison to the fiscal target of Rs 27,86,349 crore.
Total receipts for the month came in at Rs 3,99,673 crore in comparison to the fiscal target of Rs 20,82,589 crore.