Govt’s Rs 13.35 lakh crore direct taxes collection target for FY20 is achievable: CBDT Chairman

CBDT Chairman Pramod Chandra Mody has said that the government’s direct taxes collection target of Rs 13.35 lakh crore for the current financial year (FY20) is difficult, but achievable. He also said that the government can only think of further lowering corporate tax rates once the exemptions and deductions in this sector are phased out.

Mody said “I am happy to say that the government in its wisdom was appreciative of that and they went by the actual collections which happened last year. And consequent to that the budget (collection target for direct taxes) has now been fixed at Rs 13.35 lakh crore.” He indicated that this translates to about 17.5 percent increase year-on-year. He noted that now, this current target has to be seen in the perspective of the historical growth rate in collections in the past three years. He said “this gives me lot of hope and confidence that we will be able to achieve the 17.5 percent growth that we are mandated to achieve. It would be a difficult task but not totally unachievable.”

CBDT Chairman further highlighted that the direct tax revenue collection has increased from Rs 6.38 lakh crore in FY 2013-14 to Rs 11.37 lakh crore in the FY 2018-19 i.e the direct tax collection has witnessed a rise of approximately 78%. Besides, he expressed hoped that the economy would do well and consequently the revenue collection will also do well with the kind of push that has been given to investment and growth in the latest budget.