Net personal income tax collections were growing at a faster pace of 20.7% compared to corporate income tax inflows, which grew by 13.62% in the first eleven months and ten days of this financial year. file | Photo credit: The Hindu
Increase in India’s net direct tax collections, which was about 17% for the year as of early MarchGrowth is expected to moderate to 15% for the entire fiscal year 2022-23, said a top finance ministry official Hindu,
The net receipts of the government from direct taxes were to increase by about 49% to about ₹14.09 lakh crore in 2021-22. The sharp growth is attributed to the economy’s gradual recovery from the COVID-19 pandemic lockdown, which hit economic activity last year.
slow growth
Flow of direct taxes, which include corporate income tax, personal income tax and securities transaction tax (STT) increased by about 20% till mid-December 2022But every successive month has registered a marginal decline in the growth rate.
By February 10 The growth rate stood at 18.4%Who further reduced to 16.8% by March 10, when the total net direct tax kitty stood at ₹ 13.73 lakh crore. This amount was 96.7% of the Budget Estimates for 2022-23 and 83.2% of the Revised Estimates for direct taxes.
“We expect to end the year with around 15% growth on the net direct tax front,” the official said. Their dues were not waived off this year, unlike in 2021-22 when the second wave of the pandemic necessitated some relaxations.
fast refund
“Also, the pace of refunds has increased this year and some of these refunds may be from last year as well. Third, the growth rate of the economy, as well as the rate of inflation, has declined in the second half of the year relative to the first half of the year,” the official said.
Refunds issued to taxpayers this year amounted to ₹2.95 lakh crore till March 10, which is almost 60% higher than refunds issued in the same period last year. Net personal income tax collections were growing at a faster pace of 20.7% compared to corporate income tax inflows, which grew by 13.62% in the first eleven months and ten days of this financial year.
In a statement on March 11, the finance ministry had said, “The provisional figures of direct tax collections up to March 10, 2023, continue to register steady growth.” Same period of 2021-22.
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‘exciting’
“Gross tax revenue this year has been encouraging despite revenue losses due to cuts in customs and excise duties,” said Rajni Sinha, chief economist at CareAge Ratings. While she was non-committal about the prospects for net direct tax growth, she said gross direct tax collections were likely to meet or exceed the revised target of ₹16.5 lakh crore for the year.
“The buoyant revenue collection could help keep the government’s fiscal deficit target under control,” Ms Sinha said. CareEdge estimates gross tax collections for 2022-23 at Rs 31.1 lakh crore, slightly higher than the Centre’s revised estimate of Rs 30.4 lakh crore.