Due to Corona, now the possibility of reduction in tax collection of the country has deepened. Along with this, after the stock market fell by almost 9,500 points in the last 10 days, the disinvestment program of many state-owned companies is expected to be lower than before. At present, experts are not able to predict how much tax collection will be reduced due to Corona. But it is certain that not only in the current financial year but during the next financial year (2020-2021), the effect of corona can be seen on tax collection. With this, Corona has taken the form of a global pandemic and two of the world's largest economies, America and China, have been affected. Along with this, according to the report of global agencies, China's growth rate will fall by 0.4 percent, in the US by 0.2 percent and in India by 0.1 percent. At the same time, industrial production and world trade are definitely going to decrease.
Exports of goods from India are expected to decline by at least $ 10 billion in the current financial year. The GST collection will only increase when goods are sold and customers will use various services. With the impact of Corona, there are signs of decrease in demand which will directly affect the GST collection. Along with this, the effect of Corona is also visible on the area like restaurants, hotels, tourism, which will reduce the collection from the service sector. India only earns $ 30 billion (about Rs 2.1 lakh crore) from foreign tourists. The tax incident is abetted by the ban on the arrival of foreign tourists by 15 April and the increasing incidence of cancellations for the next few months. Imports will be reduced as supply chains from China are affected. This will also reduce the GST tax collection as imports are taxed as IGST. IGST declined by 2 per cent in February due to decrease in imports.
According to MS Money, partner of tax expert and Delroy, on the 20th of this month, the businessmen will file the last month's GST return, whose data will be released by the government in April. Therefore, it cannot be said right now how much tax collection can be reduced, but the collection can be affected. Apart from this, according to Finance Ministry sources, the continuous decline in the market due to Corona has led to a huge reduction in the share price, which is going to affect the earnings from disinvestment during the current financial year. At the same time, the government had targeted to get Rs 65,000 crore from disinvestment this year, which can now be reduced to 50,000 crore. Because of Corona, the government has deferred the proposal to sell shares in government companies like Coal India, SAIL, IRCON and NMDC.
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