: Tax revenues soar 34% to record `27.07 lakh cr in FY22 #finance #StockMarketNEWS #Business Press Trust of India New Delhi India’s gross tax collections soared to a record high of Rs 27. 07

Posted in: #finance #StockMarketNEWS #Business

Tax revenues soar 34% to record `27.07 lakh cr in FY22 #finance #StockMarketNEWS #Business
Press Trust of India

New Delhi

India’s gross tax collections soared to a record high of Rs 27. 07 lakh crore in the fiscal year ended March 31, led by impressive growth in corporate tax and customs, taking the tax-to-GDP (gross domestic product) ratio to an over two-decade high of 11. 7%, Revenue Secretary Tarun Bajaj said on Friday.

Reflecting buoyancy in economy and the impact of anti-tax evasion measures, direct tax collection rose by a record 49% to Rs 14. 10 lakh crore, while indirect taxes posted a growth of 20% to Rs 12. 90 lakh crore.

“A lot of technology is being used where goods and service tax (GST) figures are now being matched with income tax figures and compliances are being ensured. So all these has resulted in better compliance and better revenues both in direct and indirect taxes,�? Bajaj told reporters here.

The tax-to-GDP ratio in 2021-22 jumped to 11. 7% the highest since 1999. In 2020-21 fiscal, the ratio was 10. 3%.

“The direct taxes are more than indirect taxes (in 2021-22) and I hope this trend will continue in the coming years,�? Bajaj added.

Bajaj said the overall tax buoyancy showed a “healthy, robust figure�?. The tax buoyancy came in at about 2, which means the rate of growth in tax collection was around twice as fast as nominal GDP growth.

Gross tax collection of Rs 27. 07 lakh crore during April 2021 to March 2022 has exceeded the budget estimate by Rs 5 lakh crore. The total mop up was 34% more than the Rs 20. 27 lakh crore collected in the 2020-21 fiscal.

Direct taxes, which comprise income tax paid by individuals and corporate tax, came in at Rs 14. 10 lakh crore, a growth of 49% over last fiscal, which Bajaj said was perhaps the highest growth rate in a “long time�?.

Corporate taxes grew 56. 1% to Rs 8. 58 lakh crore, while personal income tax collection jumped 43% to about Rs 7. 49 lakh crore.

During the year, Rs 2. 24 lakh crore worth income tax refunds were issued to 2. 43 crore entities.

In indirect taxes, while customs collection zoomed 48% to over Rs 1. 99 lakh crore, CGST and cess mop-up soared 30% at Rs 6. 95 lakh crore. Excise collection, however, dipped 0. 2% to Rs 3. 90 lakh crore during the 2021-22 fiscal.

Bajaj further said the anti-GST evasion measures have helped in checking the menace of fake invoices and businesses fraudulently claiming tax credit.

Asked about the prospects of tax collection in the ongoing fiscal, the secretary said the figures have been provided in the Budget and it may not be possible to repeat such high growth rate in the current financial year.

Bajaj further said it might be difficult to achieve the budgeted customs collection for the current fiscal as it may not be possible to fully restore the import duty on edible oils and pulses because of the rising prices.