Tax-related matters are today in the most strategic domain. The corona pandemic has led to a significant fall in economic growth, reduction in incomes and a stall in spending, thus seriously impacting tax revenues. India has been grappling with low GDP growth over the last two years but the fall in the tax revenue growth has been sharper. While nominal GDP growth fell from 11.1% in FY18 to 7.5% for FY20, gross total revenue (GTR) growth in the same period dropped from 11.8% to 4%. In Q1 of the current financial year, GTR declined by 32.6% yoy; corporate tax by 23%; income tax by 36%; and GST by 52%. All indications are that the actual numbers for the full fiscal might be grimmer. The measures to ease compliance, offer time deferrals and digitalise tax administration are welcome. Perhaps, the changed times offer an opportunity to usher in big-bang tax reforms. However, the government has a tough task at hand – augmenting tax revenue while incentivising demand and consumption. 

For the past decade, IMA’s Tax Summit has provided a neutral platform bringing together tax policy makers, tax specialists and CFOs to debate strategic issues and challenges around India’s tax regime and develop mutually beneficial solutions. This year’s Tax Summit aims to brainstorm the outlook for taxation in India in the context of a transforming environment.