Govt to earn Rs 30,000 crore from new tax proposals on super rich, petrol and diesal: Revenue Secretary
The surcharge on super rich is expected to fetch an additional Rs 12,000-13,000 crore, said Revenue Secretary Ajay Bhushan Pandey
The government will rake in an additional Rs 30,000 crore in revenue from higher tax imposed on super-rich and higher duties on petrol and diesel in current fiscal year, Revenue Secretary Ajay Bhushan Pandey said.
He said the exchequer will mobilise the additional resources by way of increase in duty and cess on petrol and diesel, and increased customs duty on gold and precious metals, besides higher surcharge on super-rich.
However, there will be some revenue loss on account of the increase in ambit of concessional corporate tax rate of 25 per cent to companies having a turnover of Rs 400 crore as against Rs 250 crore earlier.
The annual gain from increase in Special Additional Excise duty and road cess on petrol and diesel is Rs 30,000 crore. However, for the remaining nine months of the current fiscal, the government is expecting a revenue gain of Rs 22,000 crore. The surcharge on super rich is expected to fetch an additional Rs 12,000-13,000 crore.
Finance Minister Nirmala Sitharaman in 2019-20 Budget, tabled in Parliament, proposed to increase surcharge from 15 per cent to 25 per cent on taxable income between Rs 2-5 crore and from 15 per cent to 37 per cent for income above Rs 5 crore. The exchequer is likely to forego a revenue of Rs 4,000 crore on account of the proposal to increase the ambit of lower corporate tax rate to cover 99.3 per cent of Indian companies.
The government is estimated to get an additional Rs 3,000-4,000 crore from the hike in customs duty on gold and precious metals to 12.5 per cent from 10 per cent. However, this gain will be offset by lowering of customs duty on various other goods.
On net basis, Pandey said, the tax proposals in the Budget will yield the government an additional Rs 30,000 crore during the current fiscal.