India expects tax collection growth to continue despite surge in COVID-19 cases

India expects tax collection growth to continue despite surge in COVID-19 cases

Picture used for illustrative purpose. File



The growth in India's tax collections will continue despite concerns that economic activity could fall because of a second wave of COVID-19 infections this month, a finance ministry official said on Tuesday.

 Some business leaders have expressed concerns over the lockdowns by many states after a surge in infections, fearing that it could hit consumer demand and sales as well as tax collections.

India's indirect tax receipts, mainly comprising customs and nationwide goods and services tax, in the financial year ending on March 31 increased more than 12% on year to 10.71 trillion rupees ($142 billion), M. Ajit Kumar, chairman of the Central Board of Indirect Taxes and Customs at the ministry told a virtual news briefing.

"This momentum is likely to continue in the coming year," he said, while ruling out much impact of the second wave of COVID infections. "We may