MisleadingDhruv Ratheechecked 1 Oct 2026“In 2019, the Modi government slashed corporate tax rates, resulting in a revenue loss of ₹1.45 lakh crore in 2019-20 alone. Over the past five years, the government's revenue loss due to corporate tax cuts amounts to ₹9 trillion.”
₹1.45 lakh crore in 2019-20; ₹9 trillion over five years, ₹1.45 lakh crore
What the evidence showsHide the evidence
What they said
₹1.45 lakh crore in 2019-20; ₹9 trillion over five years
Dhruv Rathee said the Modi government's 2019 corporate tax rate cuts caused a revenue loss of ₹1.45 lakh crore in 2019-20 and ₹9 trillion over five years.
jotosob.in, checked 1 Oct 2026
What is actually true
₹1.45 lakh crore
revenue impact of corporate tax reforms, Finance Ministry, June 2020
pib.gov.in
The Finance Ministry's Press Information Bureau release of 7 June 2020 estimated the revenue impact of the corporate tax reforms at ₹1.45 lakh crore for 2019-20. A Rajya Sabha answer from the Ministry of Finance notes that corporate tax collections recovered to ₹7.12 lakh crore in 2021-22, higher than in 2018-19. No official source in the record states a five-year revenue loss of ₹9 trillion; a report citing a Parliament reply puts the concessional corporate tax regime's revenue impact at about ₹5.39 lakh crore over six years.
- The Finance Ministry's 7 June 2020 PIB release estimated the revenue impact of the corporate tax reforms at ₹1.45 lakh crore for 2019-20. [3]
- The 2019 Taxation Laws (Amendment) Ordinance provided a concessional corporate tax regime of 22% for existing domestic companies. [3]
- A Rajya Sabha answer said corporate tax collections in 2021-22 were ₹7.12 lakh crore, higher than the 2018-19 collection. [1]
- A report citing a Parliament reply put the concessional corporate tax regime's revenue impact at about ₹5.39 lakh crore over six years, not ₹9 trillion. [4]
[1] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE ... — sansad.in[3] Press Release Page | Press Information Bureau — pib.gov.in[4] The ₹5.4 lakh crore question: what did the 2019 corporate tax ... — abhilashs385253.substack.com
The first figure is accurate: the Finance Ministry itself estimated ₹1.45 lakh crore for 2019-20. But the five-year ₹9 trillion figure, which is ₹9 lakh crore, is not supported by the record. The only multi-year breakdown in the sources totals about ₹5.39 lakh crore over six years, and official data shows corporate tax collections recovered above pre-cut levels by 2021-22. The claim therefore mixes a correct one-year estimate with an inflated five-year total.