Mubasher: Corporate and income tax revenues in India are expected to decline in 2020, for the first time in more than 20 years, Reuters first reported citing official sources.

This comes as India faces a sharp decline in economic growth, and despite the Indian government targeting to collect $189 billion worth of taxes during the year ending 31 March. A target that means a 17% year-on-year (YoY) increase in direct taxes.

Meanwhile, the government forecasts the gross domestic product (GDP) to grow by 5% this year, plummeting to its lowest level in more than a decade.

Furthermore, weak demand led many companies in India to cutting jobs and reducing investments, thus, leading to a decline in expected tax collections.