Union Budget 2024-25: Govt likely to raise estimates for tax hike

The Union government is likely to increase its tax revenue projections for 2024-25 by Rs 30,000-40,000 crore in the upcoming budget, according to two officials in the know. The change is expected on account of higher economic growth projections compared to those in the interim budget, besides improved tax dynamics, mainly driven by direct taxes and the central goods and services tax (CGST).

“We can expect a revision of Rs 15,000-20,000 crore for both direct and indirect taxes in the Budget, in line with higher GDP growth projections and the current robust trend in tax collections,” one of the officials said.