The Indian government incurred taxation-related revenue loss of over Rs 13.71 lakh crore from financial years 2019-20 to 2023-24, said Pankaj Chaudhary, Minister of State for Finance, while responding to queries in the Parliament on Monday.
This revenue loss was due to tax exemptions, deductions and incentives extended to corporate and other categories of taxpayer, according to the minister.
He apprised that around Rs 2.5 lakh crore was foregone under customs. These were for the fiscals 2019–20, 2020-21, 2021-22, 2022-23 and 2023–24.
Chaudhary responded to a question on whether the government has reviewed the impact of the tax incentives by saying that no such review was undertaken.
He added that phasing out the exemptions and incentives available to various taxpayers and simplifying the tax structure is the stated policy of the government.
The minister also stated that corporate tax rates were gradually decreased starting from the Finance Act in 2016.
Chaudhary said that an option has been provided to corporates to pay tax at concessional rate of 22% if they do not avail specified deductions or incentives through the Taxation Laws (Amendment) Act, 2019.
“Taxation rates, exemptions and tax incentives in terms of employment generation, capital investment, wage growth, innovation or regional development are part of the overall fiscal policy of the government which aims at holistic growth of the economy," he said.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
