Urging corporates to revive animal spirits to increase private investment and boost growth, Revenue Secretary Tarun Bajaj on Wednesday sought suggestions from the industry to take measures to support growth. Bajaj also said that tax revenues are expected to be robust this fiscal on the back of better-than-expected corporate sector performance.
“I want to understand from you one thing which I still see missing from the corporate sector is the animal spirits, I don’t see the private investment happening as much. I want to understand as to what you expect from us, to do, so that we can also start,” Bajaj said at the CII Annual Session.
Acknowledging that high GST rates are impacting the automotive sector, Bajaj said the GST Council would look at solutions to bring down rates that are very high, take out certain items from the tax-exempt category and correct the inverted duty structure. “When I look at the current first quarter, the results have started coming and (tax) revenues have also started coming. The first advance tax is over, the TDS date is coming and going, I see a very, very robust tax revenue that is coming.”
The government is looking at robust tax revenues this year, seeing it as an indication of better-than-expected corporate performance. But stagnant private investment remains a concern, prompting the government to urge the private sector to revive animal spirits.
“Rates have come down at macro level, yes, in a few sectors they may have gone up. But we have to look at solutions to bring down rates which are very high and take out certain items which are under exempted items, inverted duty structures, we need to do that and I’m sure, in the coming GST council meeting when we give this agenda, I am sure we will be able to get those things,” he said.
“It is not that we have increased the taxes, or we have become more intrusive and we are coming to you asking to pay more taxes… the happy thing behind this is, perhaps the corporate sector is doing better than what we had anticipated it to,” Bajaj said.