Tax to GDP ratio at 21-year high, expected to grow further

Tax collection boom

The Tax Collection-Tax GDP ratio of the country increased to 11.7 percent in the year 2021-22. Which is the highest level since 1999. In the year 1999, the tax to GDP ratio was 10.3 percent.

country’s economy (Economy) continues to strengthen. The increasing tax collection of the country is giving a clear indication of this. The situation is that the ratio of total tax and GDP collected by the country (Tax-GDP ratio) has reached the highest level of 2 decades at present. Along with this, India’s gross tax collection ,tax collection) is also at a new record level. This information has been received from the figures given by Revenue Secretary Tarun Bajaj today. According to the data, India’s gross tax collection has crossed the level of Rs 27 lakh crore in the financial year ended March. According to the secretary, this increase has been seen due to the fast growth in corporate tax and customs. According to the secretary, due to the growth in the economy and the steps taken by the government, direct tax collection has increased by 49 percent and indirect tax collection by 20 percent.

Tax to GDP ratio at record level

According to the data, the country’s tax to GDP ratio increased to 11.7 percent in the year 2021-22. Which is the highest level since 1999. In the year 1999, the tax to GDP ratio was 10.3 percent. With a growing economy, increasing tax collection is a good sign. That is, with the expansion of the economy, the taxable income of people and companies is also increasing. The Revenue Secretary said that in the year 2021-22, direct tax was more than in direct tax and it is expected that this increase will continue even further. Along with this, the pace of growth in tax collection is twice that of the nominal GDP growth. According to the secretary, these signs are very good for the economy and it is expected that along with the economy, the pace of tax collection will continue. However, he also admitted that getting such high figures of bounce will not be easy now.

Tax collection more than budget estimate

According to the data, the gross tax collection for the period April 2021 to March 2022 has been Rs 27.07 lakh crore, which is Rs 5 lakh crore more than the budget estimate. At the same time, this amount is 34 percent more than the tax collected in 2020-21. Out of this, the share of direct tax is more than Rs 14 lakh crore, there has been a growth of 49 percent, according to the secretary, this growth has been achieved after a long time. At the same time, corporate taxes have increased by more than 56 percent. According to Bajaj, the steps taken by the government to curb the methods of GST evasion have seen a lot of impact. The government has kept the estimate of direct tax collection for the year 2022-23 at Rs 14.2 lakh crore, of which Rs 7.2 lakh crore has been kept for corporate tax and Rs 7 lakh crore for personal income tax. The same Bajaj feared that the Russian-Ukraine crisis may have a bad effect on the economy. The biggest concern is the commodity prices.

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