Govt's worry on corporation tax revenue front may worsen in coming years

Concern over a falling share of corporation tax revenue may get worse

The Centre’s tax collections in recent years have been a cause for concern. Even before the pandemic cast its shadow on the economy, tax collections had begun showing signs of a slowdown.

In the five years of the Modi government’s first term, the share of the Centre’s gross tax revenue in gross domestic product (GDP) saw only a small rise — from about 10 per cent in 2014-15 to 11 per cent in 2018-19. But in 2019-20, the first year of the Modi government’s second term and before the outbreak of Covid-19, the share of gross tax in GDP fell