New Delhi: India’s gross tax collections rose to ₹27.07 lakh crore ($356.82 billion) in 2021/22 financial year ending in March, a top finance ministry official told reporters on Friday, April 8, surpassing the revised target by a wide margin.
In February, Nirmala Sitharaman, India’s finance minister had upwardly revised the tax receipts’ target to ₹25.16 lakh crore rupees from earlier estimate of ₹22.17 lakh crore for the FY22.
Meanwhile, the direct tax collections stood at ₹14.10 lakh crore in the reporting year, which is ₹3.02 lakh crore more than budget estimate, Revenue Secretary Tarun Bajaj said.
Direct tax collections in FY22 grew 49%, while indirect tax collection rose 30%.
In direct taxes, corporate tax collections were up by 56%, while personal income tax is up by 43%.
In indirect taxes, the customs duties grew by 48% which reflects robust trade in the economy, Bajaj said, adding that the overall improved tax revenue shows the resilience and robust recovery of the economy.
The finance ministry said fiscal year 2021-22 marks the highest tax-GDP ratio of 11.7%, with direct tax to GDP ratio at 6.1% and indirect tax to GDP ratio at 5.6%.
The tax buoyancy, which is a measure of growth in tax revenues as compared to GDP growth, is at a very healthy figure of 1.9, the ministry said, adding that the same is 2.8 for direct taxes and 1.1 for indirect taxes.
The ratio of direct to indirect taxes recovered from 0.9 in 2020-21 back to 1.1 in 2021-22.