Govt to Exceed FY22 Tax Collection Target, Direct Tax Mop-up at ₹6 lakh cr till Oct, says Revenue Secy
Budgeted a 9.5 per cent growth in tax collections at ₹22.2 lakh crore
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 would 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 per cent growth in tax collections at ₹22.2 lakh crore for the 2021-22 fiscal (April-March). In the last fiscal, the mop-up was ₹20.2 lakh crore.
Of this, revenues from direct taxes are estimated to be around ₹11 lakh, including ₹5.47 lakh crore from corporate tax and ₹5.61 lakh crore from income tax.
About the goods and services tax (GST) revenues, Bajaj said the collections in November would also be good numbers, but the December mop-up will be a 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.