Economy News

Tax revenue: tax catch-up likely to be lower than revised estimate: official – Mintpaisa

The government may miss a revised tax collection target of Rs 30.43 lakh crore for the current financial year, a senior official has said. The revised estimate was sharply increased by more than 10% from the budget estimate for the fiscal year 24 budget presented last month, the official said.

The Revised Estimates (RE) for current tax gross revenue pegged at Rs 30.43 lakh crore, higher than the budget estimate of Rs 27.57 lakh crore.

On the direct tax side, the official said, “The RE was quite steep. We expect a shortfall. Net collections could be between Rs 15 and 15.5 lakh crore.”

In the current financial year (2022-23), revenue from direct tax (which includes income and corporate taxes) is expected to increase by more than 17% to Rs 16.50 lakh crore from the financial year 2021-22 when collection was Rs 14.20 lakh crore.
In the current financial year, corporate tax revenue is expected to reach Rs 8.35 lakh crore. This is expected to increase by 10.4% to over Rs 9.22 lakh crore in the next financial year.

Personal income tax collections for this financial year are estimated at Rs 8.15 lakh crore and are expected to increase by 10.4% to over Rs 9 lakh crore next year.

Customs duty collections are expected to rise by 11% to Rs 2.33 lakh crore, up from Rs 2.10 lakh crore in the revised estimates. On the indirect tax side, another official said, “we expect a shortfall on the customs side.”

There was a reduction in customs sweep in the latest budget as the target was reduced to Rs 2.10 lakh crore from Rs 2.13 lakh crore estimated earlier for the financial year ending March 2023.

GST collections are expected to increase by 12% in the next financial year to reach Rs 9.56 lakh crore. In the current financial year, revised estimates peg GST collection at Rs 8.54 lakh crore.

A third official said GST revenues also looked quite high with the central GST and clearing tax asking rate combined at Rs 86,000 crore in March. Income from CGST and levy combined usually amounts to around Rs 60,000-63,000 crore every month

Taking both direct and indirect taxes, gross tax collection is expected to increase by 10.45% to Rs 33.61 lakh crore in 2023-24. In the current financial year, the revised estimate pegs the gross tax revenue at Rs 30.43 lakh crore.

Net direct tax collection so far for this financial year increased by 17% to Rs 13.73 lakh crore, or 83% of the revised target for the full financial year, the Central Council said last week. direct taxes (CBDT).

Growth in direct tax collection, which includes personal income tax and corporation tax, was driven by PIT collections.

On a gross basis, the collection grew by 22.58% to Rs 16.68 lakh crore. Refunds amounting to Rs 2.95 lakh crore were issued from April 1, 2022 to March 10, 2023, 59.44% more than refunds issued during the same period of the previous year.

The direct tax collection, net of refunds, stands at Rs 13.73 lakh crore, 16.78% higher than the net collections for the corresponding period last year.


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