Govt to surpass tax collection target in FY22: Revenue secy
The government has budgeted a 9.5% hike in tax collections at ₹22.2 lakh crore
NEW DELHI: With the net direct tax collection till October closing in on ₹6 lakh crore and average monthly GST mop-up likely around ₹1.15 lakh crore this fiscal, the government’s tax collection kitty will surpass budget estimates this financial year, Revenue Secretary Tarun Bajaj said.
In an interview with PTI, Bajaj said the relief in excise duty on petrol and diesel and customs duty on edible oil will cost the exchequer about ₹80,000 crore this financial year, and the revenue department will start calculating the tax mop-up position vis-a-vis budget estimates for this fiscal after the December advance tax number.
“After refunds also, we have touched almost ₹6 lakh crore till October in direct taxes... It is looking good. Hopefully, we should exceed it.
“Though we have given a lot of relief in indirect taxes in petrol, diesel and edible oil, also there are some sunset that have come in customs duty where the total benefit would be about ₹75,000-80,000 crore, but still I think we should exceed the budgeted estimates on both direct and indirect taxes,” Bajaj said.
The government has budgeted a 9.5% growth in tax collections at ₹22.2 lakh crore for 2021-22 fiscal (April-March). In the last fiscal, the mop-up was Rs 20.2 lakh crore.
Of this, revenues from direct taxes are estimated to be around ₹11 lakh crore, including ₹5.47 lakh crore from corporate tax and ₹5.61 lakh crore from income tax.
With regard to the goods and services tax (GST) revenues, Bajaj said the collections in November will also be good numbers but December mop-up will be little lukewarm. The pick-up in collections will be visible again in the March quarter.
“The revenues are looking good, GST revenues are also good. We crossed ₹1.30 lakh crore (in October). This month, I think we should get a good GST number. This was Diwali, our GST revenue will keep changing.
“But, i think the run rate should not go below ₹1.15 lakh crore. Overall, we should do well in GST, excise duty and customs duty, also we will achieve our budgeted estimates. So, overall, we will exceed,” Bajaj said.
Customs collection in the current fiscal is budgeted at ₹1.36 lakh crore, excise duty at ₹3.35 lakh crore. Besides, Centre’s GST revenues, including compensation cess, are pegged at ₹6.30 lakh crore.
Direct tax collections for the current financial year till 22 September rose to ₹5,70,568 crore, registering an increase of 74.4% from the corresponding period of the preceding financial year when the collection was ₹3,27,174 crore, as per thr data released by the Ministry of Finance.
Despite extremely challenging initial months of the fiscal year 2021-22, the advance tax collection in the second quarter of FY 2021-22 was ₹1,72,071 crore which showed a growth of 51.50% over the corresponding period in FY 2020-21 when the collection was ₹1,13,571 crore.
The cumulative advance tax collections for the first and second quarter of the current financial year stood at ₹2,53,353 crore, against collections of ₹1,62,037 crore for the corresponding period of the immediately preceding Financial Year i.e 2020-21, showing a growth of 56%(approximately).
Further, the cumulative collection of ₹2,53,353 crore shows a growth of 14.62% over the corresponding period in FY 2019-20, when the collection (cumulative) was ₹2,21,036 crore.