Tax revenue collection expected to be better than budget estimates in FY23: Revenue Secretary
Revenue Secretary Tarun Bajaj on Thursday said tax revenue collection in the current fiscal is expected to be much better than the budget estimate.
In the last fiscal, there was an increase of 20 per cent in indirect taxes and 49 per cent in direct taxes. The tax-to-GDP ratio rose to 11.7 per cent in 2021-22 – the highest since 1999. In 2020-21, the ratio was 10.3 per cent.
The country’s tax collection touched a record high of Rs 27.07 lakh crore last year as compared to the budget estimate of Rs 22.17 lakh crore.
Bajaj said the government has been able to collect Rs 5 lakh crore more tax than the budget estimates for 2021-22, he said.
“While we are starting the new financial year and are in the month of June, I would need one more month to ascertain how we are proceeding with the revenue figures.
Bajaj said, “But whatever the indicators I have at the moment, I feel very optimistic, and think again this year, when we were budgeting, we will be able to do much better than when we were budgeting. Were.”
This is despite the fact that some concessions have been given on customs duty, and on excise duty on indirect taxes, he said.
Bajaj was speaking at the prestigious week celebrations under the ‘Azadi Ka Amrit Mahotsav’ to mark 75 years of India’s independence. The event was organized by the Central Board of Indirect Taxes and Customs (CBIC).
On the Goods and Services Tax (GST) front, there has been a good growth in revenue, he said.
“I sincerely expect that in the current year, as far as GST is concerned, the average revenue for the full year will be closer to Rs 1.40-1.50 lakh crore,” Bajaj said.
On the direct tax front too, the early indicators are good and there should be good growth in tax revenue, he added.
Speaking on the economy, he said that at present, the country is facing some challenges on inflation, rising current account deficit, fiscal deficit and currency valuation.
“I think at the moment, both in our desire to control inflation” reserve Bank of India And the government has taken some steps and I hope these steps will work, and we will be able to see stability in our macro indicators in the times to come,” he said.