New Delhi: The gross tax to GDP ratio declined to 10.9 per cent in 2018-19 as indirect tax revenues fell short of budget estimates by about 16 per cent, due to shortfall in Goods and Services Tax (GST) mop up, the Economic Survey said. However, indirect taxes fell short of budget estimates by about 16 per cent, following a shortfall in GST revenues as compared to the budget estimates. The survey said though there has been improvement in tax to GDP ratio over the last six years, gross tax revenues as a proportion of GDP has declined by 0.3 percentage points in 2018-19 over 2017-18. "Indirect taxes have fallen by 0.4 percentage points of GDP primarily due to shortfall in GST collections. "Widening of tax base due to increase in the number of indirect tax filers in the GST regime has also led to improved tax buoyancy.

Source: Mint July 04, 2019 11:37 UTC