The government’s revenue foregone in the form of incentives and tax exemptions to corporates in the current fiscal is estimated to grow nearly 8 per cent to over Rs 62,398 crore.
The revenue foregone stood at Rs 57,793 crore in the 2013-14 fiscal.
“Though the revenue impact has been quantified in terms of tax expenditure, it does not imply that this quantum of revenue has been waived by the government. Rather, these could be seen as targeted expenditure for the promotion of certain sectors,” the Finance Ministry said in its budget document on Saturday.
Revenue foregone on account of deduction of export profits of units located in SEZs (section 10A and 10AA) was to the tune of Rs 18,393 crore in the current fiscal year.
Companies take advantage of various concessions to reduce tax liability, while individuals park their funds in tax savings scheme to reduce tax burden.
Revenue foregone on deduction of profits of undertakings engaged in generation, transmission and distribution of power was to tune of Rs 10,606.9 crore in 2014-15 compared to Rs 9,824 crore in the last fiscal year, it said.
Similarly, revenue foregone on deductions of profit of industrial undertakings derived from production of mineral oil and natural gas stood at Rs 6,742 crore in the current fiscal.
