TIOL-DDT 2545 · Tuesday, 24 February 2015 · story 4 of 6

Basis for indirect tax revenue estimate for BE

  • Advance estimate of nominal GDP growth provided by Economic Division of DEA.

  • Change in tax policy, ARM, stimulus package/exemptions relief (if any), etc. during the Union Budget.

  • Sectoral analysis by TRU.

  • Feedback and projection from the field formations.

  • Inputs from concerned Ministries, e.g. POL sector growth as provided by PPAC, Ministry of Petroleum, industry associations and sectoral analysis available in credible publications.

  • Import and export sector analysis based on trends.

  • Estimation of refund and duty drawback outgo.

  • Inputs from Budget and Economic Affair Division.

  • Tax buoyancy factor (multiplier) usually provided by budget division after assessing the overall revenue potential and fiscal target constraints.