Tax Collection: Tax collections soar to record Rs 27.07 lakh crore in FY22 | India Business News – Times of India

NEW DELHI: India’s gross tax collections soared to a document excessive of Rs 27.07 lakh crore within the fiscal yr ended March 31, led by spectacular progress in company tax and customs, taking the tax-to-GDP ratio to an over two-decade excessive of 11.7 per cent, income secretary Tarun Bajaj stated on Friday.
Reflecting buoyancy in financial system and the affect of anti-tax evasion measures, direct tax assortment rose by a document 49 per cent to Rs 14.10 lakh crore, whereas oblique taxes posted a progress of 20 per cent to Rs 12.90 lakh crore.
“Lots of know-how is getting used the place GST figures at the moment are being matched with earnings tax figures and compliances are being ensured. So all these has resulted in higher compliance and higher revenues each in direct and oblique taxes,” Bajaj instructed reporters right here.
The tax-to-GDP ratio in 2021-22 jumped to 11.7 per cent — the best since 1999. In 2020-21 fiscal, the ratio was 10.3 per cent.
“The direct taxes are greater than oblique taxes (in 2021-22) and I hope this pattern will proceed within the coming years,” Bajaj added.
Bajaj stated the general tax buoyancy confirmed a “wholesome, strong determine”. The tax buoyancy got here in at about 2, which suggests the speed of progress in tax assortment was round twice as quick as nominal GDP progress.
Gross tax assortment of Rs 27.07 lakh crore throughout April 2021 to March 2022 has exceeded the price range estimate by Rs 5 lakh crore. The full mop up was 34 per cent greater than the Rs 20.27 lakh crore collected within the 2020-21 fiscal.
Direct taxes, which comprise earnings tax paid by people and company tax, got here in at Rs 14.10 lakh crore, a progress of 49 per cent over final fiscal, which Bajaj stated was maybe the best progress charge in a “very long time”.
Company taxes grew 56.1 per cent to Rs 8.58 lakh crore, whereas private earnings tax assortment jumped 43 per cent to about Rs 7.49 lakh crore.
In the course of the yr, Rs 2.24 lakh crore price earnings tax refunds have been issued to 2.43 crore entities.
In oblique taxes, whereas customs assortment zoomed 48 per cent to over Rs 1.99 lakh crore, CGST and cess mop-up soared 30 per cent at Rs 6.95 lakh crore. Excise assortment, nonetheless, dipped 0.2 per cent to Rs 3.90 lakh crore through the 2021-22 fiscal.
Bajaj additional stated the anti-GST evasion measures have helped in checking the menace of pretend invoices and companies fraudulently claiming tax credit score.
Requested in regards to the prospects of tax assortment within the ongoing fiscal, the secretary stated the figures have been offered within the Finances and it will not be potential to repeat such excessive progress charge within the present monetary yr.
Bajaj additional stated it is perhaps tough to realize the budgeted customs assortment for the present fiscal because it will not be potential to totally restore the import obligation on edible oils and pulses due to the rising costs.
The federal government had decreased the customs obligation on edible oil and pulses final fiscal with a view to containing spiralling home costs.
Direct tax assortment for the 2022-23 fiscal, which started on April 1, has been pegged at Rs 14.20 lakh crore. This consists of Rs 7.20 lakh crore from company taxes and Rs 7 lakh crore from private earnings tax.
Oblique tax assortment has been projected at Rs 13.30 lakh crore. This consists of Rs 2.13 lakh crore from customs, excise assortment of Rs 3.35 lakh crore and CGST and cess of Rs 7.80 lakh crore.
To a query on the Russia-Ukraine conflict, Bajaj stated “the impact on financial system is worrisome however would rely on various elements like commodity costs and its impact on provide chain”.
Commenting on the figures, ICRA Chief Economist Aditi Nayar stated after eradicating the cost associated to arrears for previous years, combination tax devolution to states in FY2022 has overshot the Revised Estimates (RE) degree by Rs 95,000 crore. “We don’t count on the FY2022 fiscal deficit to deviate meaningfully from the RE,” Nayar added.

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