Overview

• On July 22, MoS Finance Pankaj Chaudhary submitted the latest figures in a written Rajya Sabha reply to AAP MP Raghav Chadha.
• Revenue foregone reflects incentives delivered through deductions and rate cuts introduced in Finance Acts from 2016 onwards.
• These losses rose steeply from ₹8,043 crore in FY19-20 to ₹88,109 crore in FY22-23 before reaching ₹98,999 crore in FY23-24.
• Corporate tax rates were cut from 29% in 2016 to 25% in 2017, then to 22% for existing firms and 15% for new manufacturers in 2019, followed by a 35% rate for foreign companies in 2024.
• Lawmakers and budget planners are examining the growing fiscal cost as the Finance Ministry has not yet released FY24-25 foregone estimates.