India’s tax revenue will exceed budget estimates by almost Rs 4 trillion this fiscal year due to higher rates of income tax, customs duties and GST (Goods and Services Tax), Tax Minister Tarun Bajaj said today.
In an interview with PTI, he said tax revenue growth will continue to outpace GDP (gross domestic product) growth, aided by the formalization of the economy and better compliance.
For the current fiscal year ending March 2023, the tax collection target set in the Union Budget is around Rs 27.5 lakh.
Tarun Bajaj said the direct tax collection including personal and corporate taxes will be close to Rs 17.5 crore in the current financial year. The deduction from indirect taxes (duties, excise and GST) will be close to Rs 14 trillion.
He said the total tax revenue for 2022-23 is expected to be around Rs 31.5 crore.
The budget increased direct and indirect taxes by Rs 14.2 million and Rs 13.3 million respectively for the current financial year, bringing the total to Rs 27.5 million.
“We are using a lot of data. We have data from the Income Tax and GST departments and the MCA (Ministry of Corporate Affairs). We are also getting data on high value spending. Formalization of the economy and technology can help improve compliance sex,” Tarun Bajaj said.
Direct tax collection rose by almost 50 per cent to Rs 14.1 crore in the last financial year as compared to 2020-21.
“The trend of higher tax revenue than GDP growth will continue,” Tarun Bajaj said.
He also said the government would be very close to the targets set in the budget despite the reduction in customs duty and excise duty this fiscal year.
Budget sets targets to collect Rs 2.13 trillion and Rs 3.35 trillion from customs duties and excise duties respectively
(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)
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