Growth rate of direct tax collection difficult to sustain in next financial year

- The global economic environment will also be challenging for India

MUMBAI: It will be tough for the finance ministry to maintain the 19.50 per cent growth rate of direct tax collection in the next financial year. Due to the global economic slowdown and the high level of the current financial year, it will be difficult to sustain tax growth. The current financial year has seen a record growth in the net collection of income tax and corporate tax.

Low growth in economic growth rate in financial year 2023-24 will affect income tax collection, government sources said. In the current financial year, the net collection of direct taxes increased by 19.55 percent to Rs 12.31 lakh crore as on January 10. This amount is equal to 86.68 percent of the budget estimate. In the budget of the current financial year to be presented on February 1st, the estimate for the current year will be changed and the estimates for the next financial year will also be announced.

Keeping in view the current global economic situation, it is difficult to sustain the growth rate of 19.50 per cent in the next financial year, sources also said.

The economic growth rate of the country is expected to be 7 percent in the current financial year and it is expected to decrease to 6 to 6.50 percent in the next year.