Finance Ministry revises down direct tax target for smaller cities

The new target is set according to the revenue potential of each region; the budgetary target of Rs 13.8 trillion has been kept unchanged

A day after election results are out, the Ministry of Finance has moderated the tax collection target for smaller cities, while increasing it for bigger centres like Mumbai and Delhi for the financial year 2019-20 (FY20). However, the total budgetary target has been kept unchanged at Rs 13.8 trillion as announced in the interim Budget.

In a circular to the income-tax (I-T) department, the North Block said Budget target has been fixed keeping in view the revenue potential of the area. This has been calculated "based on the weighted average growth rate of the net collections of last three years,