India is much better prepared to deal with the revival of COVID-19 cases and the economy as well as the job creation of the informal sector, which is expected to continue bouncing back through this year, Tarun Bajaj, Secretary of the Department of Revenue and Economic Affairs in the Ministry of Finance, said in an interview. Edited excerpts:
With the financial year 2020-21 behind us, where do you see the state of the economy this year? Is the second wave a concern?
The state of the economy is far better.
You have estimated growth rates by various agencies. We forecast an increase of 10.4% this year, but the IMF has forecast over 11%, while Fitch Ratings has projected a 12.8% rate yesterday. So, I think we are now seeing the economy in a very healthy state.
However, the second wave is a small concern, I’d say. But at the same time, we are better equipped to handle it.
Now, no state is saying that it is going for lockdown. Maharashtra announced, but is not doing, which is very sensible.
Living with COVID is a new normal function. So now that our health infrastructure has been upgraded and vaccines are there, we should handle it in these ways rather than lockdown.
If we do this, we will also ensure employment in the informal sector, and that the economy will continue to grow. And, we have got a lot of compatibility.
Now, when compared to Delhi I see that it was a complete lockdown, one could run below 100 kmph. Right now, traffic is completely normal.
Therefore, I think people are conscious that we have to live with coronovirus in a sense now. But I am sure that we will be able to overcome this situation.
Has revenue collection improved in the last two months, perhaps more than the revised estimates presented in the budget?
In both direct and indirect taxes, the revenue figures are currently significantly better in the months of February and March.
The direct tax gross collection will not be less than 2% -3% in the previous year 2019-20 as compared to the previous year, which is a big thing.
As a matter of fact, we have given ₹ 70,000 crore more to taxpayers as compared to last year which was about 1.86 lakh crore. This year we have refunded more than 2.5 lakh crores.
The GST collection for the month of March set a record; It has never been so high. We have crossed the record collection with a good collection.
What is the update on tax disputes resolved under the Vivaad Se Vishwas Dispute Resolution Scheme?
Over 1.33 lakh applications have come for Rs 1.99,960 crore, of which around ₹ 53,800 crore has already been adjusted (as on 31 March, 5 pm).
Industry players, especially foreign businesses, are concerned about the implication of the same levy as its main purpose is that it can exchange e-mails or payment to firms, not even from e-commerce platforms. Can cover using digital methods. transactions …
We will also issue an explanation in this regard.
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