NEW DELHI, Jan 20 (Reuters) – The Indian authorities could discover it troublesome to take care of its present progress momentum in direct taxes within the subsequent fiscal 12 months as financial progress is predicted to sluggish, a authorities official stated on Friday.

Finance Minister Nirmala Sitharaman will current the Union Budget on Feb. 1, which is able to embrace projections for subsequent 12 months’s tax assortment.

Net direct tax assortment was at the moment rising at 19.5% 12 months on 12 months, totaling 12.31 trillion rupees ($151.70 billion) in April 2022-January 10, 2023.

The anticipated decrease nominal GDP progress within the subsequent fiscal 12 months might affect earnings tax collections, which embrace particular person in addition to company taxes, the federal government official informed reporters.

India’s nominal GDP, which incorporates inflation, is estimated to develop at 15.4%, and is likely to fall in 2023-24, hurting tax collections.

That, in flip, might put stress on the federal authorities to cut back its fiscal deficit.

($1 = 81.1450 Indian rupees)

Reporting by Nikunj Ohri and Manoj Kumar in New Delhi
Editing by Shilpa Jamkhandikar, Miral Fahmy and Nivedita Bhattacharjee

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