Slow tax growth reflects companies' GST troubles

Corporation tax collection up only 7% in April-July FY18, against 12% a year ago

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Experts said the slowdown could be attributed to adjustments leading to destocking and the offering of discounts by companies as the government ushered in the new indirect taxation system on July 1

Indivjal Dhasmana New Delhi

Last Updated : Aug 10 2017 | 12:17 PM IST

The exchequer got 19.1 per cent more from direct taxes in the first four months of the current financial year (FY18), but the amount paid by companies reflected their struggle with the goods and services tax (GST).

The total direct taxes after refunds grew 19.1 per cent at Rs 1.9 lakh crore between April and June this year. Last year, during this period, it had risen 24 per cent.

This is a minor deceleration, but when compared in terms of percentage of Budget Estimates (BE), the figures this time are rosier.

The collections constituted 19.5 per cent of the BE