Direct tax collections from metros sees double-digit decline
Published On: Monday, August 24, 2020 | By: Team KnowMyStock
With most top Indian cities witnessing double-digit contraction in receipts, direct tax collections are likely to remain muted in the second consecutive quarter of the current fiscal year. Kolkata emerged the worst-affected metro city, reporting a drop of 60 percent in the mop-up during April-August 20. It was followed by Chennai and Delhi, which saw a decline of 41 percent and 36 percent, respectively. Mumbai was, however, one of the least-affected regions, though the collection was down there too. Mumbai, which has the highest share of 34 percent in overall direct tax collections, witnessed a drop by 13 percent, despite accounting for an ever-growing share of total Covid-19 cases.
Bengaluru is the only metro city showing growth of 10 per cent at Rs 30,777 crore. This is followed by Guhawati, which also reported an increase in collection by 4.7 per cent at Rs 1,212 crore compared to Rs 1,158 crore during the same period a year ago.
As of August 20, the total net direct tax collections showed a drop of 26.3 per cent at Rs 1.89 trillion against Rs 2.56 trillion a year ago. The downward trend is likely to continue in the September quarter too.
Other tier-1 cities such as Hyderabad, Pune, Chandigarh, and Ahmedabad also saw a massive drop of 30-45 per cent in tax receipts till August 20 this year.
Even corporate tax mop up till August 20 from major cities did not see much improvement. For instance, Mumbai collected Rs 25,611 crore, followed by Bengaluru, which reported Rs 12,521 crore and Delhi was at Rs 7,989 crore.
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