2019-07-13_Corporate_Professional_Today

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July 13 To July 19, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 53

Introduction

The Department of Economic Affairs, Finance Ministry of

India presents the Economic Survey in the parliament every

year, just before the Union Budget. The Economic Survey

2018-19 has been tabled by the Finance Minister, Smt.

Nirmala Sitharaman, in the Parliament on 4th July, 2019. This

survey has been prepared by the Chief Economic Advisor

Sh. Krishnamurthy Subramanian. Being the first economic

survey of Modi 2.0, it outlines strategic blueprint to achieve

Prime Minister’s Vision for $5 trillion economy by 2024-25.

Here are the key tax facts and suggestions from the

Economic Survey 2018-19

1. The Gross-tax to GDP ratio has declined to 10.9% in
   2018-19 as indirect tax revenues fell short of budget
   estimates. Though there has been improvement in Tax
   to GDP ratio over last six years, but it has declined by
   0.3% in 2018-19 over 2017-18.


2. In 2018-19, direct taxes grew by 13.4% owing to improved
   performance of corporate tax. However, indirect taxes
   fell short of the budget estimates by about 16%. Indi-
   rect taxes have fallen by 0.4% of GDP primarily due to
   shortfall in GST collections. This has been partly offset
   by 0.1% increase in direct taxes.


3. Widening of tax base due to increase in the number of
   indirect tax filers in the GST regime has led to improved
   tax buoyancy. Going forward, sustaining improvement
   in tax collection will depend on the revenue buoyancy
   of GST.

Tax facts and suggestions in

‘Economic Survey’