India’s tax collection will exceed the budget estimate by nearly ₹4 lakh crore in the current fiscal on the back of buoyant income tax, customs duty and GST mop-up,
In an interview to PTI, he said the growth in tax revenues will continue to be higher than the GDP growth, helped by formalisation of the economy and better compliance.
For this financial year ending March 2023, the tax collection target set in the Union Budget is around ₹27.50 lakh crore.
Bajaj said the direct tax collection comprising personal and corporate taxes would be close to ₹17.50 lakh crore in the current fiscal. Mop up from indirect taxes (customs, excise and GST) would be close to ₹14 lakh crore.
The total tax collection is expected to be about ₹31.50 lakh crore in 2022-23, he said. The Budget had pegged direct and indirect tax mop up at ₹14.20 lakh crore and ₹13.30 lakh crore for current fiscal, taking the total figure to ₹27.50 lakh crore.
“We are using a lot of data. We have data from income tax and GST departments, and MCA (Ministry of Corporate Affairs). We are also getting data regarding high value expenditure. Formalisation of economy and technology has helped improved compliance,” Bajaj said.
Last fiscal, the direct tax collection grew nearly 50 per cent to ₹14.10 lakh crore compared to 2020-21. “The trend of higher tax collection than GDP growth will continue,” Bajaj said.
He also said that even though there was a reduction in customs and excise duties during this fiscal, the government will be very close to the target set in the Budget.
The Budget has set a target of collecting ₹2.13 lakh crore and ₹3.35 lakh crore from customs and excise duties, respectively.
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