tax revenues

The increase ranging between 10.9 to 12.7 per cent for the budget estimate of Rs 27.6 lakh crore gross tax collection has been recorded for the year. The gross direct tax collections went 30.7 per cent up from the last year to Rs 10.54 lakh crore, as per the latest data, as of 10 November

The government expects a surge in tax revenue at around Rs 3 to 3.5 lakh crore in the current fiscal year considering the revised accounts estimates for financial year 2023 (FY23) which is going to be presented in the February budget, said the officials.

There has been an increase in both direct and indirect taxes’ collection due to improved compliance, the post-pandemic economic recovery and high inflation, officials added.

The increase ranging between 10.9 to 12.7 per cent for the budget estimate of Rs 27.6 lakh crore gross tax collection has been recorded for the year.

Expectedly, the collection will majorly fund the extra spending on food and fertiliser subsidies and keep a check on fiscal deficit.

While presenting the budget in February for the current fiscal year, finance minister Nirmala Sitharaman had set a target of gross tax revenue of Rs 27.6 lakh crore in FY23. Reportedly the estimate is 9.5 per cent up from the revised estimate of Rs 25.2 lakh crore for FY22.

The gross direct tax collections went 30.7 per cent up from the last year to Rs 10.54 lakh crore, as per the latest data, as of 10 November. During the first ten months of the fiscal, the goods and service tax revenue is equally robust and up with 29.7 per cent at Rs 10.5 lakh crore.

A surge in the nominal gross domestic product (GDP) at 26.7 per cent on year-on-year basis was witnessed during the June quarter. It nearly doubled from 13.5% growth in real terms. As compared to the budget estimates in FY22 at Rs 22.2 lakh crore, the gross tax collections too went up, reaching Rs 25.2 lakh crore in the revised estimate.

According to the officials, apart from the recovery, the use of data mining and improved compliance, continued buoyancy. The rise in revenue will enable the government meet a spike in subsidy bills due to the rally in global food, fertiliser and fuel prices.