The Centre’s muted tax collection numbers have gotten lost in the euphoria around the better-than-expected GDP numbers in the first quarter of the current financial year. While the GDP numbers are giving a rosy picture of the economy, tax collection numbers should make the government a little worried. One possible explanation for the muted tax revenue growth is the slow growth in the nominal GDP. The contraction in corporate tax collection coupled with an underwhelming private investment scenario may spell trouble for the government. One possible explanation for the muted tax revenue growth is the slow growth in the nominal GDP.

Source: Indian Express September 04, 2023 01:03 UTC