Raise revenues from improved tech-driven enforcement: KPMG to govt

The government’s revenue needs for increased expenditure in the next fiscal year should be met through increased tax collection, fuelled by economic recovery, and improved technology-driven enforcement instead of a new tax, revealed findings of a poll conducted by KPMG.

However, around 29 per cent of the respondents expect a new Covid-19 cess on existing taxes. The government is expected to lift its expenditure to fuel growth, at a time when the economy is set to see its first contraction in decades.

Due to the financial impact of the pandemic, a majority of respondents of the poll expect an increase in tax deduction for provisions made towards non-performing assets by banks and non-banking financial companies (NBFCs). This is expected to provide a much-needed relief to banks and NBFCs, which are bracing for increased delinquencies on account of the pandemic.

To help resolve tax disputes, a majority of respondents feel that a mediation scheme should be introduced in the Budget to help in negotiating settlements.