FY22 gross revenues at file; direct tax mop-up rises 49%

Gross tax collections surged to a brand new excessive of Rs 27.07 lakh crore in fiscal 2021-22, newest information by the Finance Ministry confirmed Friday. Marking a 33.5 per cent enhance over final fiscal’s gross tax collections, the improved income buoyancy additionally mirrored within the tax-GDP ratio growing to over two-decade excessive of 11.7 per cent, mentioned Revenue Secretary Tarun Bajaj.

Net tax mop-up in FY22 was Rs 18.22 lakh crore, a 27.8 per cent enhance over the precise income collected in 2020-21, officers mentioned.

Direct tax collections, internet of refunds, rose by 49 per cent to Rs 14.10 lakh crore final fiscal, whereas oblique taxes posted a progress 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 this has resulted in better compliance and better revenues both in direct and indirect taxes,” Bajaj mentioned. The tax-to-GDP ratio in FY22 jumped to 11.7 per cent , the best since 1999. In 2020-21, 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.

He mentioned the general tax buoyancy confirmed a “healthy, robust figure”. The tax buoyancy got here in at about 2, which suggests the speed of progress in tax assortment was round twice as quick as nominal GDP progress. Gross tax mop-up of Rs 27.07 lakh crore in April 2021-March 2022 exceeded the Budget Estimate by Rs 5 lakh crore and the Revised Estimate by Rs 1.91 lakh crore. The whole assortment was 34 per cent greater than the Rs 20.27 lakh crore collected within the 2020-21 fiscal.

Corporate taxes grew 56.1 per cent to Rs 8.58 lakh crore, whereas private earnings tax assortment rose 43 per cent to about Rs 7.49 lakh crore. During the yr, Rs 2.24 lakh crore of earnings tax refunds have been issued to 2.43 crore entities.

In oblique taxes, whereas Customs assortment rose 48 per cent to over Rs 1.99 lakh crore, CGST and cess mop-up grew 30 per cent to Rs 6.95 lakh crore. Excise assortment, nonetheless, dipped 0.2 per cent to Rs 3.90 lakh crore in 2021-22.

Bajaj additional mentioned anti-GST evasion measures helped test the menace of faux invoices and companies fraudulently claiming tax credit score. For the estimates which were offered within the Budget for FY23, Bajaj mentioned it is probably not doable to repeat such a excessive progress charge within the present monetary yr. It may be troublesome to realize the budgeted customs assortment for the present fiscal because it is probably not doable to completely restore the import responsibility on edible oils and pulses due to the rising costs, he mentioned.

The authorities had lowered the Customs responsibility on edible oil and pulses within the final monetary yr with a view to containing spiralling home costs. Direct tax assortment for the FY23, which started on April 1, has been pegged at Rs 14.20 lakh crore. This consists of Rs 7.20 lakh crore from company taxes and Rs 7 lakh crore from private earnings tax.