Economic Survey 2022-23 presented on Tuesday showed that the gross tax revenues have touched 65 per cent of the Budget estimates at Rs 17.81 lakh crore during the first eight months of the current fiscal till November. This was backed by corporate and personal income tax mop-up.
During April-November 2022, the government's gross tax revenue mop-up stood at Rs 17.81 lakh crore or 64.6 per cent of the full-year target of Rs 27.58 lakh crore.
The survey said that structural reforms like the introduction of GST and the digitalisation of economic transactions have led to the greater formalisation of the economy and hence expanded the tax net and enhanced tax compliance. Thus revenues have grown at a pace much higher than the growth in GDP.
Gross Tax Revenue registered a year-on-year (YoY) growth of 15.5 per cent from April to November 2022, and the net tax Revenue to the Centre after the assignment to states grew by 7.9 per cent on a year-on-year basis, stated the Survey.
The Economic Survey highlighted that Direct taxes grew at 26 per cent year-on-year basis due to corporate and personal income tax growth in FY22. Adding that growth rates observed in the major direct taxes during the first eight months of FY23 were much higher than their corresponding longer-term averages.
The Survey showed that high imports have led to a 12.4 per cent year-on-year growth in customs collection from April to November 2022. However, the excise duty collection has declined by 20.9 per cent from April to November 2022 on a year-on-year basis.
“The GST Taxpayers doubled to 1.4 crores from 70 lakhs in 2022. The gross GST collections were Rs 13.40 lakh crore from April to December 2022. Thus, implying a YoY growth of 24.8 per cent with an average monthly collection of Rs 1.5 lakh crore”, noted the Survey.
It further highlighted that improvement in GST collections has been due to the nationwide drive against GST evaders and fake bills and systemic changes introduced such as rate rationalisation correcting inverted duty structure.