Amid slowdown in the industrial production which may be further dampened by hike in key policy rates by the RBI, the finance ministry on Thursday said corporate tax collection could take a beating in the current fiscal. ?I am worried about the likelihood of a slight slowdown in the corporate tax growth rate. Now again, RBI on Thursday came out with announcement on the rate increase. We have to see how it works out,? finance secretary Sunil Mitra told reporters here.
His statement follows the Reserve Bank?s announcement of hiking its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points to contain inflation which is hovering over 9%. The factory output measured in terms of Index of Industrial Production (IIP) declined to 6.3% in April from 13.1% in the same month last year. ?I do have a little worry about slow down that is being observed in industrial indices (and) also in the core sector growth,? Mitra said.
