TaxTMI 
TaxTMI 
Economic Survey Draws Attention to 10 New Economic Facts on Indian Economy
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....conomic Survey Draws Attention to 10 New Economic Facts on Indian Economy <br>Income Tax<br>Dated:- 29-1-2018<br><BR>The Economic Survey presented by the Union Finance Minister Shri Arun Jaitley in Parliament today has relied upon analysis of the new data to highlight ten new economic facts: 1. Goods and Services Tax (GST) has given a new perceptive of the Indian economy and new data has emerged. There has been a fifty percent increase in the number of indirect taxpayers. There has also been a large increase in voluntary registrations, especially by small enterprises that buy from large enterprises wanting to avail themselves of input tax credits. The Survey also stated that ....
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....fears of major producing states that the shift to the new system would undermine their tax collections have been allayed as the distribution of the GST base among the states got closely linked to the size of their economies. Similarly, there has been an addition of about 18 lakh in individual income tax filers since November 2016. 2. India's formal sector, especially formal non-farm payroll, is substantially greater than what it currently is believed to be. It became evident that when "formality" was defined in terms of social security provisions like EPFO/ESIC the formal sector payroll was found to be about 31 percent of the non-agricultural work force. When "formality" w....
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....as defined in terms of being part of the GST net, such formal sector payroll share was found to be 53 percent. 3. For the first time in India's history, data on the international exports of states has been dwelt in the Economic Survey. Such data indicates a strong correlation between export performance and states' standard of living. States that export internationally and trade with other states were found to be richer. Such correlation is stronger between prosperity and international trade. 4. India's exports are unusual in that the largest firms account for a much smaller share of exports than in other comparable countries. Top one p....
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....ercent of Indian firms account only for 38% of exports unlike in other countries where they account for substantially greater share - (72, 68, 67 and 55 percent in Brazil, Germany, Mexico and USA respectively). Such tendencies were also found to be true for the top five or ten per cent of the Indian companies. 5. It was pointed out that the Rebate of State Levies (ROSL) has increased exports of ready-made garments (man-made fibers) by about 16 per cent but not of others. 6. The data highlighted another seemingly known fact that Indian society exhibits a strong desire for a male child. It pointed out that most parents continued to have children ....
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....until they get number of sons. The survey gave details of various scenarios leading to skewed sex ratios and also gave a comparison on sex ratio by birth between India and Indonesia. 7. The survey pointed out that tax departments in India have gone in for contesting against in several tax disputes but also with a low success rate which is below 30 per cent. About 66 per cent of pending cases accounted for only 1.8 per cent of value at stake. It further stated that 0.2 per cent of cases accounted for 56 per cent of the value at stake. 8. Extrapolating the data the survey indicated that growth in savings did not bring economic growth but th....
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....e growth in investment did. 9. The survey mentions that collections of direct taxes by Indian states and other local governments, where they have powers to collect them is significantly lower than their counterparts in other federal countries. A comparison has been given between ratios of direct tax to total revenues of local governments in India, Brazil and Germany. 10. The survey captures the footprints of climate change on the Indian territory and consequent adverse impact on agricultural yields. Extreme temperature increases and deficiency in rainfall have been captured on the Indian map and the graphical changes in agricultural yields are brought out from s....
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....uch data. The impact was found to be twice as large in un-irrigated areas as in irrigated ones. ============= Document 1 pilo ECONOMIC SURVEY 2017-18 Information on GST yields Exciting Findings • 50% increase in number of indirect taxpayers • Large increase in voluntary registrations under GST ⚫ Distribution of GST base among states closely linked to size of their economies Strong correlation between export performance and states' standard of living ⚫ India's largest firms account for a much smaller share of exports than in other comparable countries • India's formal sector is substantially greater than currently believed Document 2 Regis....
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....tratns in million Figure 1A 7 6 5 4 3 2 = 2 + 8 In Million Figure 1B Additional 1.8 mille pajt New Unique GST Registrants Old Unique Registrants Nov. 2010 Nov, 2011 Nov. 2012 Nov. 2013 Nov. 314 Nov. 3015 No. 26 Nov. 2011 Nov, 2012 Nov. 2013 Nov. 2014 Nov. 2015 Nov. 2016 2017 Document 3 70 60 50 50 % of Non-farm employment (LHS) Employees (crore, RHS) 40 7.5 % of Non-farm employment 30 20 20 10. 31 14 12.7 12 53 10. 00 10 Employee in crore + 2 0 0 Defined by Social Security Defined by Tax Net Document 4 International Exports and States' Prosperity States' Inter-state Gross Trade and Prosperity 125 12.5 11.5 ⚫ KE KA ΜΗ HR • GJ TN TE PUN 12 = 11 www WEAP R....
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....J OD MP UP JH correlation 0.49 So 10.5 La GSDP Per Capita 11.5 11 CG HR KE TN MH KA GJ WE ⚫PUN AP TE OD Ln GSDP Per Capita ☠" 5 10.5 UP BH correason=0.70 10 10.0 10 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Export to GSDP BH 60.0 110.0 160.0 2100 X+M to GSDP Document 5 Share in Exports 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0.0% 10.0% USA India » Brazil Mexico Germany 20.0% 30.0% 40.0% 50.0% Percent of Firms Document 6 0.80 1.80 0.80 1.30 1.80 1.55 India Sex Ratio by Birth when child is not the last (2015-16) Sex Ratio by Birth when child is the last (2015-16) Ideal SRB 1.05 1.07 1.05 0.86 0.85 0.84 0.88 1st Child 2nd Child 3rd Child Indonesia 4th C....
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....hild με τις 1.55 1.30 Ideal SRB 1.05 1.11 1.08 1.13 1.07 1.05 102 102 1st Child 2nd Child POPE 4th Child 5th Child 1.01 1st Child 1.82 2nd Child India 1.80 1.65 1.55 1.55 1.51 1.45 1.30 3rd Child Indonesia 1.09 4th Child 5th Child 1.80 1.55 1.30 1.05 1.07 1.03 0.80 1.05 0.80 Document 7 G M Direct Tax to Total Revenue: States and Local Government (in percent) Direct Tax/Total Revenue: States 30.0 Direct Tax/Total Revenue: Local Governments 25.0 30.0 20.0 ngo 10.0 00 0.0 20.0 15.0 10.0 00 5.0 0.0 go 2011 2012 2013 2014 2015 2016 Germany India 2010 Brazil 2010 2011 2012 2013 2014 2015 2016 India ULGs Brazil Germany India RLGs Document 8 Spatial D....
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....istribution of Temperature Changes (Degrees Celsius change between average of 2005-15 and average of 1950-80) Temperature Change (in degree Celsius) max decline to -1 -1 to -0.5 -0.5 to 0 0 to 0.25 0.25 to 0.5 0.5 to 0.75 0.75 to max increase Document 9 Impact on Agricultural Yields of Tempera- ture Changes (Kharif, in percent) according to Temperature Deciles 8% 6% 4% 2% 0% -2% -4% -6% 2 3 4 67 Deciles of Temperature Distribution -8% -10% Cooler Warmer -12% -Unirrigated Areas -Irrigated Areas 10<BR> News - Press release - PIB....