The government is likely to lose out on nearly Rs 6 lakh crore in tax revenue due to tax concessions, deductions and exemptions provided to companies.
According to data provided by the government, it in FY16, the revenue impact of direct tax incentives is likely to be Rs 1.28 lakh crore. This is up from the Rs 1.18 lakh crore that the government lost out on in FY15.
In 2015-16 the projected direct tax impact is likely to be Rs 1,28,639 crore, up from Rs 1,18,593 crore, up 8.47% in one year.
Similarly, revenue impact of tax incentives from indirect taxes like customs and excise duty, is likely to be Rs 4.82 lakh crore this year.
The government provides various tax incentives in the form of exemptions and special rates of depreciation and rebates, under the Income TAx Act, 1961, to promote exports, for balanced regional development, to create infrastructure facilities, employment, and more, it said.
The government is likely to lose Rs 4,82,489 lakh crore in the year to concessions on indirect taxes, up from Rs 4,35,756 crore, a 10.72% increase.
The data was provided by Minister of State for Finance Santosh Kumar Gangwar in a written reply to a question asked in the Rajya Sabha.