India faces first fall in direct taxes in at least two decades: Report

Government was targetting direct tax collection of Rs 13.5 trillion ($189 billion) for the year ending March 31 - a 17% increase over the prior fiscal year

Corporation and income tax collection for the current year is likely to fall for the first time in at least two decades, over half a dozen senior tax officials told Reuters, amid a sharp fall in economic growth and cut in corporation tax rates.

Prime Minister Narendra Modi’s government was targeting direct tax collection of ~13.5 trillion ($189 billion) for the year ending March 31 — a 17 per cent increase over the last fiscal year.

However, a sharp decline in demand has stung businesses, forcing companies to cut investment and jobs, denting tax collections and prompting the government to