tax to gdp ratio

One, reduce or scrap tax on foreign capital, to get it out of flight mode. That will shore up rupee also. Two, end tax disparity between bank deposits and capital gains, to lower lending rates

Short-term global economic shocks, like the ongoing Middle East conflict, have the potential to temporarily slow the growth story - a fact that cannot be ignored if India hopes to be among the top three world economies in the coming years.

India's economy has faced significant challenges from global oil price surges over the past fifty years. From the 1973 Arab embargo to the recent Hormuz disruption, these shocks have impacted inflation and foreign exchange reserves. Policymakers have continuously adapted strategies to manage these crises, balancing economic stability with consumer needs.

A report from Bank of Baroda highlights that this gap represents a significant policy opportunity, as India possesses larger potential due to favourable demographics. The report notes that more efforts are being directed towards holistic tax reforms, including simplification, rationalisation, and digitisation, with signs of an improving tax-to-GDP ratio in the near term.

GOI’s revenue secretary & joint secretary, revenue, argue that empirical evidence shows India’s tax-GDP ratio is in line with its development status

Finance Minister Nirmala Sitharaman highlighted India's strong debt management, with an 81% debt-to-GDP ratio, positioning it favorably among major economies amidst global economic volatility. The ongoing Middle East conflict poses a systemic threat to global energy, impacting supply chains and economic stability, while the RBI's MPC begins deliberations amid inflation concerns.

India’s balanced geopolitical approach has helped mitigate risks. Strong relationships across key global blocs have enabled continued access to energy and trade routes, positioning India relatively well in a fragmented global environment.

India needs a tax buoyancy of 1.2-1.5 to achieve a 6.5-7% growth rate, according to an EY report. To support this growth, the government may need to boost the tax-to-GDP ratio to 14% by FY31. Enhancing tax buoyancy, managing expenditures, and continuing structural reforms are crucial for sustainable growth. India's projected GDP growth for the next fiscal is 6.3-6.8%.

NEW DELHI: The Economic Survey on Tuesday asked the government to widen the service tax base to boost overall tax collections that witnessed a negative 7.2 per cent growth to fetch Rs 84,996 till December in the current fiscal.

The government has budgeted for over Rs 19.06 lakh crore from taxes in the current fiscal, a growth of about 15 per cent over the last fiscal. The tax-GDP ratios are projected to be 11.6 per cent in 2018-19 and 11.9 per cent in 2019-20 respectively, it said.

New Delhi, Aug 10 () The implementation of GST and increased surveillance post demonetisation will help increase the tax-GDP ratio to 11.9 per cent by 2019-20, government said today. The gross tax-GDP ratio in 2017-18 is estimated to be around 11.3 per cent.

Mumbai, Dec 8 () Blaming India Inc's lobbying for tax exemptions, Prime Minister's Economic Advisory Council chairman Bibek Debroy has said eliminating such exemptions can help increase the tax-to-GDP ratio and hoped the government panel tasked with reviewing the Income Tax Act will look into this

Tax-to-GDP ratio, a critical economic metric, has increased over the last few years. That’s very good news. Govt’s next goals should be a simple tax code & a system to tax self-employed professionals

Finance minister Nirmala Sitharaman faces a huge challenge this year. The govt’s revenues are down but expenditure commitments are up. In the circumstances, any additional burden on existing taxpayers or any new taxes like wealth tax/estate duty,which were discontinued earlier, may not be in sync. The mantra for the FM in Budget 2021 should be ‘No New Tax’.

New Delhi, Dec 28 () The income tax department seized assets worth Rs 992.52 crore during 2017-18, while 582 search and seizure operations were conducted during the financial year, Parliament was informed Friday.

Home minister P Chidambaram has argued for higher taxes on luxury products and has backed imposing inheritance tax to raise resources, while expressing concern over the low tax-GDP ratio, according to the minutes of the Planning Commission meeting chaired by Prime Minister Manmohan Singh last month.

New Delhi, June 29 () As the GST roll out completes one year on July 1, industry and tax experts today said they believe that the indirect tax regime will lead to improved revenue realisations and compliance going forward.

Ahead of the proposed implementation of the Direct Tax Code (DTC) and the Goods and Services Tax (GST) next year, chairman of the parliamentary standing committee on finance Yashwant Sinha has offered assurances of changing the landscape of taxation.

The FM has avoided short-term populism, but with interest payments rising over 40%, they are eating into resources that would be better spent elsewhere

New Delhi, Jul 4 () The gross tax to gdp ratio declined to 10.9 per cent in 2018-19 as indirect tax revenues fell short of budget estimates by about 16 per cent, due to shortfall in Goods and Services Tax (GST) mop up, the Economic Survey said.

New Delhi, Jun 18 () Union Minister Arun Jaitley today urged citizens to pay their due share of taxes "honestly" to reduce dependence on oil as a revenue source, and virtually ruled out any cut in excise duty on petrol and diesel saying it could prove to be counter-productive.

New Delhi, Jan 2 () The direct tax-to-GDP ratio of 5.98 per cent achieved during 2017-18 fiscal is the best in the last 10 years, the finance ministry said Wednesday. It was 5.57 per cent in 2016-17 and 5.47 per cent in 2015-16.

A pre-Budget discussion on challenges and expectation from Union Budget (2012-13) was organised in the department of economics, Allahabad University, on Monday.

The Fourteenth Finance Commission’s recommendations are based on modest expectations of growth in central government’s tax collections as it feels last decade’s fast-paced growth in tax collections is unlikely to be replicated.

Ajay Bhushan Pandey, who took over as revenue secretary on Friday, said his focus would be to improve the tax-GDP ratio and increase compliance by making the system more taxpayer friendly. Pandey, a 1984-batch Maharashtra cadre officer, replaced Hasmukh Adhia, who superannuated on Friday.