INDIA: The IMF today said the tax collection assumptions in India’s budget is ambitious but there is a need to look into the fiscal implications of some of the initiatives that are presently unfunded.
Referring to some of the implementations relating to the goods and services tax (GST) in 2017, IMF Director of Communications Department Gerry Rice said if these issues persist, tax revenue collection could fall short on the budget.
We think the budget assumes the tax assumes the tax revenue will rise faster than the volume of transactions in the economy. So, its ambitious. It assumes the government would be able to climb higher tax revenue from the same amount of consumption and income,a Rice told reporters at his fortnightly news conference.
