India’s tax goal on track despite slowdown: Chidambaram

Amid concerns about a ballooning fiscal deficit in the slowing economy, Finance Minister P Chidambaram affirmed that the government will clamp down tax evasion and would achieve 2012/13 tax collection target of Rs 5,70,257 crore.

A slump in growth and a rising fuel subsidy bill have raised worries that the government may miss the fiscal deficit goal of 5.1% of GDP. In four months India has consumed half the deficit budgeted for the full fiscal year and finance ministry is now seeking ways to raise revenue.

Chidambaram confirmed that the government is planning to bring non-tax compliant firms under the tax net with an aim to reduce burden on tax receipts. He also added that the government would wait for the recommendations from government panel before deciding whether to issue a controversial tax demand to Vodafone for its $11 billion purchase of Hutchison Whampoa's Indian assets.