On growth in tax collections:As far as next year’s growth is concerned, we have predicted a good solid growth rate of 15.3% as far as direct taxes is concerned. On increase in tax-to-GDP ratio:The increase in tax-to-GDP ratio will happen. Now on top of that, the increase in tax-to-GDP ratio doesn’t seem to be very impressive. But the 15% growth rate that we are estimating in direct taxes will be surpassed and we would have a much better tax-to-GDP ratio next year. If they add the excise and value added tax (VAT) and calculate the current tax incidence, then the tax rate under GST will be close to this tax incidence.

Source: Mint February 05, 2017 17:14 UTC