BUSINESS

Tax arrears: Govt yet to get Rs 1.5 trillion!

Source:PTI
July 07, 2009 17:56 IST
Disputes or otherwise, the government is yet to receive over Rs 1 trillion in taxes from corporates and other entities and add to it other arrears worth about Rs 47,000 crore (Rs 470 billion), the total outstanding equals more than half of the total revenue deficit this year.

At about Rs 150,000 crore (Rs 1.5 trillion), the unrealised tax and non-tax revenue is 53 per cent of the total revenue deficit of over Rs 282,000 crore (Rs 2.82 trillion) projected by Finance Minister Pranab Mukherjee in his Budget for 2009-10.

The arrears outstanding at the end of reporting year 2007 -08 pertain to a period of up to ten years or more and also include interests from state governments and PSUs.

In totality, the arrears that the government is still awaiting are held up in litigation, or are due for some other reasons. If realised, they could have substantially reduced the Centre's borrowings, pegged at over Rs 4,00,000 crore (Rs 4 trillion) for the current fiscal.

Bulk of the tax arrears is caught under disputes and amounts to over Rs 64,000 crore (Rs 640 billion), while the amounts not under dispute total at about Rs 40,000 crore also include cases pending for adjudication.

Out of the total unrealised tax revenue of Rs 103,808 crore (Rs 1.03 trillion), those related to corporate tax alone account for about Rs 40,000 crore (Rs 400 billion), while a similar amount is related to other income taxes.

The arrears related to customs, excise and service taxes amount to about Rs 23,662 crore (Rs 236.62 billion).

At about Rs 50,000 crore (Rs 500 billion), nearly half of the total tax revenue arrears are pending for a period of 2-5 years. The tax arrears outstanding for more than 10 years amount to about Rs 3,000 crore (Rs 30 billion), nearly one-third of which is under dispute.

The non-tax revenue arrears, totalling about Rs 47,000 crore (Rs 470 billion), include nearly half the amount pending for over five years.

Surprisingly, about 70 per cent of the non-tax revenue arrears are locked with public sector and other undertakings on account of interest receipts, sources said, adding most of the PSUs did not have the capacity to service the loans given by the government as they were either sick or under revival.

Source: PTI
© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

NEXT ARTICLE

NewsBusinessMoviesSportsCricketGet AheadDiscussionLabsMyPageVideosCompany Email