The Arvind Kejriwal government is likely to scale up tax collection target for 2016-17, though it failed to achieve the budgetary goal of Rs 24,000 crore for the current financial year.
Sources said finance minister Manish Sisodia is likely to increase tax collection target to ` 25,000 crore in his budget proposal for 2016-17 to be tabled in the Delhi Assembly today.
In June, Sisodia in his first full budget raised the target to Rs 24,000 crore —a 30% hike compared to the Rs 18,500-crore target set for 2014-15.
But the government’s trade and taxes department failed to achieve the target. The revised estimates cut the target to Rs 21,000 crore for the current financial year.
However, the government is yet to meet even the revised target, though it claimed overall tax collection increased by 11% this year compared to the previous fiscal.
Sources in the trade and taxes department termed the Rs 25,000 crore target “unrealistic”. “The target revision needs to be in consonance with the performance and limitations involved. If we have seen an increase of tax collection by 11% this year, the tax target could have been set a bit higher than it,” an official said.
He said the gover nment should factor in plans of reducing tax rates on several products before setting targets.
“It’s a fact that the overall rate of tax collection this year has been more than the last fiscal, but the target seems ambitious,” the official said.
Officials said better use of technology to increase tax base and identification of defaulters should be done to augment tax revenues.
They also suggested plugging Delhi’s porous borders in terms of transportation and trade with neighbouring states.