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Tax collection surges 34% to record Rs27.07 lakh cr in FY22

Link [2022-04-09 19:35:32]

New Delhi, April 8

India's gross tax collection soared to a record high of Rs 27.07 lakh crore in the fiscal year ended March 31 as mop-up from income, corporate taxes, customs and GST jumped, taking the tax-to-GDP ratio to the highest in 23 years, Revenue Secretary Tarun Bajaj said on Friday. The tax-to-GDP ratio jumped to 11.7% — the highest since 1999.

Tax-GDP ratio highest in 23 years

Gross tax collection of Rs27.07 lakh crore during April 2021 to March 2022 has exceeded the Budget estimate of Rs22.17 lakh crore by Rs5 lakh croreDirect taxes came in at Rs14.10 lakh crore, a growth of 49% over last fiscalCorporate taxes grew 56.1% to Rs8.58 lakh crore, while personal income tax collection jumped 43% to about Rs7.49 lakh crore

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

"A lot of technology is being used where 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 revenue both in direct and indirect taxes," he said.

Gross tax collection of Rs 27.07 lakh crore during April 2021 to March 2022 has exceeded the Budget estimate of Rs 22.17 lakh crore by Rs 5 lakh crore, he added.

The gross tax mop-up showed a 34% increase over last year's (2020-21) collection of Rs 20.27 lakh crore.

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 mop up, however, dipped 0.2% to Rs 3.90 lakh crore during the 2021-22 fiscal. Overall, indirect taxes grew 20% to Rs 12.90 lakh crore.

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