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GST, surveillance post-demonetisation to increase tax-GDP ratio: FinMin

The gross tax-GDP ratio in 2017-18 is estimated to be around 11.3%

Press Trust of India  |  New Delhi 

Finance Ministry
Ministry of Finance

The implementation of (GST) and increased post will help increase the to 11.9 per cent by 2019-20, government said on Thursday. The gross in 2017-18 is estimated to be around 11.3 per cent. In the Medium Term Expenditure Framework Statement, tabled in the Lok Sabha, the has projected that in the medium term tax revenues will show the growth anticipated during the presentation of the Budget. "In other words it is felt that any shocks to tax collections due To the introduction of will be absorbed in the current financial year and hence the will remain at the level of 2016-17," it said. The government has budgeted for over Rs 19.06 lakh crore from taxes in the current financial year, a growth of about 15 per cent over the last financial year. As per the statement, going forward "in the years 2018-19 and 2019-20 the gains from expansion of the tax base due to the introduction of and the increased post will ensure that will increase by 30 basis points". 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. (GST) was rolled out from July 1 and it is estimated that the new indirect tax regime would add to revenues and boost GDP by about 2 per cent. Besides, the of Rs 500 and Rs 1,000 notes have brought an additional over 1 crore people in the tax net.

The tax department has launched operation clean money to detect people whose cash deposits post does not match their tax profile.

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First Published: Thu, August 10 2017. 22:13 IST