FY22 Tax revenue soar 34% to record `27.07 lakh crore

FY22 Tax revenue soar 34% to record `27.07 lakh crore

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 ratio to an over two-decade high of 11.7 per cent, 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 per cent to Rs 14.10 lakh crore, while indirect taxes posted a growth of 20 per cent to Rs 12.90 lakh crore. "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 revenues both in direct and indirect taxes," Bajaj told reporters here.

The tax-to-GDP ratio in 2021-22 jumped to 11.7 per cent -- the highest since 1999. In 2020-21 fiscal, the ratio was 10.3 per cent. "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 per cent 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 per cent over last fiscal, which Bajaj said was perhaps the highest growth rate in a "long time".

Corporate taxes grew 56.1 per cent to Rs 8.58 lakh crore, while personal income tax collection jumped 43 per cent 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 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 collection, however, dipped 0.2 per cent 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.

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