Amid slowing economy, corporation tax mop-up contracts 1% in Apr-Nov

The collection numbers are expected to worsen further once the impact of the corporation tax rate cuts becomes visible in the third advance tax collection instalment due on December 15

Corporation tax collection contracted by 1 per cent in April-November 2019 compared with the same period last year, amid a slowing economy, even as the impact of the corporation tax rate cuts, announced in September, is yet to reflect in the numbers. Negative growth in the corporation tax mop-up pulled down direct tax collection growth to 1.5 per cent in the first eight months of the current financial year.

Direct tax collection, after adjusting for refunds, touched Rs 5.5 trillion at the end of November and will require a growth rate of 31 per cent in the remaining period to meet