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Business EconomyPosted at: Jul 23 2024 7:25PM


Looking at new avenues for revenue mobilisation: FM

New Delhi, July 23 (UNI) The government is looking at generating resources from newer areas including widening of the tax net, Finance Minister Nirmala Sitharaman on Tuesday during her post-Budget media interaction.
Responding to a question as to how the government would recoup the foregone revenue as a result of tax proposals in the Budget, the Finance Minister said that revenue mobilisation is not just tax-based.
As a result of Budget proposals, the central government would forego about Rs 37,000 crore of revenue while revenue of about Rs 30,000 crore will be additionally mobilized. Thus, the total revenue forgone stands at about Rs 7,000 crore annually.
"First of all, it's not just because we have mentioned it in the Budget but the attempt to widen the tax net is something which we have been repeatedly saying. India's tax net will have to be widened whether it is in the direct taxation or indirect. Second, there are also now the PSU dividends which are improving because their valuations have gone up really high. And their performances are now also substantially increased. So revenue mobilisation is not just tax-based. You have non-tax revenue mobilisations which are also coming up," Sitharaman said.
She further said that the government has been talking about asset monetisation emphasising that it is not selling of assets but optimum utilisation of those assets which are lying in the form of unutilised assets.
"...We are also looking at generating resources from newer areas. In all those, revenue is going to be mobilised better. As a result of which revenue foregone will be now made up for is our expectation," she said.
During the media briefing Revenue Secretary Sanjay Malhotra Sanjay Malhotra clarified that the proposed increase in Securities transaction tax (STT) on sale of options in securities and on sale of futures in securities will be effective from October this year.
"It's not retrospective. Increased STT will be effective from 1st of October, 2024. We are giving sufficient time for the exchanges and people who collect this tax to put the system in place," he said.
On whether there would be sunset time for the old tax regime, FM Sitharaman said that she cannot say anything on this as of now but the government's intention is to make the tax regime simpler.
"In order to make old tax regime simpler, the new tax regime was brought,” she said adding that only after review of the Income Tax Act something about sunset can be definitely said.
The Revenue secretary added further to this and said that 70% of about 4 crore income tax returns filed so far for the previous year have been filed under the new tax regime.
"People are finding the new tax regime more attractive," he stated.
UNI NK KK
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