Budget 2020: Tax revenue estimate for FY20 likely to be slashed 4-6%

This will be the second time that the projection will be changed for the current fiscal year

Economic slowdown and reduction in corporation tax rates will require the government to trim its tax revenue projection for 2019-20 in the upcoming Budget by Rs 1-1.5 trillion, the biggest seen in recent times to arrive at a realistic target.

The shortfall means 4.1-6.1 per cent of the Budget estimate of Rs 24.61 trillion.

The cuts seem steep, but would be less than what was initially expected, sources said. The government had initially expected a Rs 1.45-trillion hit from corporation tax rate cuts only. This will be the second time that the tax projection will be changed for FY20 since