Tax Revenue Collections For FY22 Surpass Targets

India’s gross tax revenue for the last fiscal surpassed budget and revised estimates, indicating a steady economic recovery.

The provisional tax revenue stood at Rs 27.07 lakh crore for FY22, Revenue Secretary Tarun Bajaj told the media on Friday. That’s 34% higher than the collections in FY21.

The budget and revised estimates for FY22 were at Rs 22.17 lakh crore and Rs 25.16 lakh crore, respectively.

Also, the tax-GDP ratio of 11.7% in FY22, according to Bajaj, was the highest in since 1999. Of this, the contribution of direct tax was at 6.1% and indirect tax was at 5.6%.

Tax buoyancy, which tracks growth in tax revenue against GDP growth, is at 1.9 — with 2.8 for direct taxes and 1.1 for indirect taxes.

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