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Rise in personal income tax collections encouraging, sustainability suspect
R Kavita Rao
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A recent press release on direct tax collections up to June 19 suggests a moderation in collections. Net collections are reported to be 1.39 per cent lower than those in the previous financial year, attributed to a decline in corporation tax collections. Is this a short-term fluctuation, or are there some other factors at play? Looking at the annual growth in revenue collections for the three major taxes, corporate income tax (CIT), non-corporation income tax (referred to as PIT) and central goods and services tax (CGST), there is a clear moderation in revenues from CIT and CGST. CIT growth fell
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