NEW DELHI: After missing revenue target for the last four financial years, the revenue department is expecting its tax revenue collection to exceed Budget target by Rs 1.5 lakh crore as it is witnessing healthy buoyancy in tax revenue despite the disruption caused by the second wave.
“This year we are comfortable, so far revenue collection is concerned. Despite stress in some sectors due to the second wave, the tax buoyancy remained steady. Even by the conservative estimates, our direct tax revenue itself will exceed the Budget target by at least Rs 1.5 lakh crore,” a senior official from the finance ministry told TNIE.
Net tax revenue was budgeted at Rs 15.45 lakh crore for the current fiscal year. As per the data of the Controller General of Accounts (CGA), the gross tax revenue during April to August in FY22 was Rs 8.60 lakh crore against Rs 5.04 lakh crore in FY21, up by 70.48% during the first five months of FY22 over the corresponding period of FY2021.
During this period, corporate tax collection stood at Rs 1.68 lakh crore, against Rs 64,715 crore in the same period last fiscal year, up by 159.68%.
Income Tax collection was Rs 1.99 lakh crore, against Rs 1.12 lakh crore in the same period last year, up by Rs 81,000 crore, or 69.35%, the CGA data revealed.
Apart from that, the government has collected Rs 1.37 lakh crore from excise duty, up by 36% of what it collected in the same period last fiscal year.
Even custom duty collection was Rs 76,225 crore, against Rs 32,302 crore collected during last fiscal year.
The centre failed to achieve tax revenues targets since 2017-18.
With government’s capital expenditure increasing since the last two months, achieving disinvestment target will be crucial.
Even non-tax revenue during April to August in FY22 was Rs 1.49 lakh crore against Rs 0.86 lakh crore in FY21, up by 73.26%, achieving 98% of the budget target.
The official added while the buoyant tax collection will consolidate fiscal position, how much it will improve it will depend on divestment targets.
CGA data for April to August reveals