Skip to main content

GST may hit Centre’s revenue by Rs. 1.5 lakh cr

By
The Centre may lose over Rs. 1.5 lakh crore revenue from cess and surcharge if the goods and services tax ( GST) is fully rolled out in 2017- 18.
However, the government may get a cushion for a few years as the chances are that the GST may be implemented without petroleum attracting the new indirect tax to begin with. Close to 70 per cent of the cess and surcharge from excise duty and service tax was accounted for by petroleum only.
Revenue from sources like cess and surcharge on excise and service tax has been budgeted at Rs. 1.55 lakh crore in 2016- 17, or 14.7 per cent of the Centre’s total net revenue after devolution to states. The budgeted revenue from cess and surcharges more than doubled from 2014- 15 and is 22.5 per cent higher than in 2015- 16.
In 2014- 15, Rs. 75,232 crore came in as cess and surcharge, or 8.32 per cent of total tax revenue after adjusting for states’ share.
In the previous financial year, Rs. 1.26 lakh crore accounted for 13.3 per cent of the Centre’s total net revenue.
The government is hopeful of gaining majority for passing constitution amendment bill for GST in the Rajya Sabha in the monsoon session. In the current financial year the government has budgeted Rs. 10000 crore revenue from Swachh Bharat cess, Rs. 5000 crore from Krishi Kalyan cess and Rs. 3000 crore from Infrastructure cess.
Business Standard New Delhi, 06th July 2016

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more