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Moody's stated that frequent rate changes make it difficult to achieve GST collection goals Photo: Mint
New Delhi: Moody's Investor Service said Monday in a research note that Moody's estimated loss of income from these tax cuts at around 0.04% -0.08. "While the proportion of income loss is low, the fluctuation in tax rates creates uncertainty about government revenues and accompanies persistent upside risks to its spending," said Moody & # 39; s
. consumer durables such as refrigerators, washing machines and small TVs were lowered as of July 27.
"The tax cuts, which will follow the declines of January 2018 and November 2017, will weigh on government revenue.This credit is negative because of the government's fiscal consolidation effort, which is already reduced compared to the initial budget deficit targets set last year, "said Union Minister Arun Jaitley in a blog last week. the chessboard suffered a total loss of income of Rs. 70,000 crore of all rate cuts since the rollout of the GST on July 1, 2017.
Moody's stated that frequent rate changes make it difficult to collect the GST "Despite the initial disruptions of the implementation of the GST, the collection of GST has increased since December 2017, but iterative changes in tax rates create downside risks for Rs. $ 7.4 billion for the full fiscal year, "added the note, adding that GST recoveries would be an important driver of future government revenue because of a broader tax base and the strength of taxation. [19659003] Moody's stated that the risks for India's budget deficit target for 2018-2019 are emerging on both the revenue side and the spending side.
"We had considered that the central government deficit target of 3.3% for the 2018 fiscal year was achievable, but the risks are trending downward given the eventual deficit GST recoveries Meanwhile, the upward pressure on spending comes from a new formula of minimum support prices for agricultural products and higher social spending, "added Moody's
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