Tax collections likely to be ‘better’ than budget estimates in FY23: Revenue Secretary
This, despite customs duty and excise concessions, he said.
This, despite customs duty and excise concessions, he said.
Revenue Secretary Tarun Bajaj on Thursday said tax revenue collection in the current fiscal is expected to be “better” than the budget estimates.
In the last financial year, indirect taxes grew by 20% and direct taxes by 49%. The tax-to-GDP ratio rose to 11.7% in FY22 – the highest since 1999. In FY21, this ratio stood at 10.3%.
The country’s tax collection touched a record high of Rs 27.07 lakh crore last year as against the budget estimate of Rs 22.17 lakh crore.
Mr Bajaj said that the government has been able to collect 5 lakh crore more taxes than the estimate for 2021-22.
“While we are starting the new financial year and are in the month of June, I would need one more month to ascertain how we are proceeding with the revenue figures.
“But whatever the indicators I have at the moment, I feel very optimistic, and think again this year, we will be able to do much better than when we were budgeting how we would do,” Mr. Bajaj said. .
He said this was despite the fact that some concessions were given on customs duty, and on excise duty on indirect taxes.
Mr Bajaj was speaking at the prestigious weeklong celebrations as part of the ‘Azadi Ka Amrit Mahotsav’ to commemorate 75 years of India’s independence. The event was organized by the Central Board of Indirect Taxes and Customs (CBIC).
On the Goods and Services Tax (GST) front, there has been a good growth in revenue, he said.
“I sincerely expect that in the current year, as far as GST is concerned, the average revenue for the full year will be closer to Rs 1.40-1.50 lakh crore,” Bajaj said.
On the direct tax front too, the early indicators are good and there should be good growth in tax revenue, he added.
Speaking on the economy, he said that at present, the country is facing some challenges on inflation, rising current account deficit, fiscal deficit and currency valuation.
“I think at this point in time, both the RBI and the government have taken some steps in our desire to control inflation and I am hopeful that these steps will bear fruit, and we will be able to see stability in our macro indicators in time to come,” He told PTI HV Anu Anu