DELHI: The government has estimated its total tax revenue to grow by 11.5% to Rs 38.3 lakh crore in FY25, up from the revised FY24 estimate of Rs 34.37 lakh crore. The FY25 estimate is 14% higher than the FY24 budget estimate of Rs 33.6 lakh crore.
The government hopes corporate tax collection will be robust in FY25, with collections increasing 13% to Rs 10.4 lakh crore over the revised FY24 estimate of Rs 9.22 lakh crore.
The income tax collections are also likely to see a large jump—Rs 11.56 lakh crore, 13% higher than the revised FY24 estimate of Rs 10.22 lakh. It must be noted that the FY revised estimate is 13.5% higher than the FY24 budget target of Rs 9 lakh crore.
Finance Minister Nirmala Sitharaman, in her budget speech, highlighted the government’s efforts to deepen the taxpayer base. She said over the last ten years, the direct tax collections have more than trebled, and the return filers have swelled to 2.4 times.
“In the last five years, our focus has been to improve tax-payer services. The age-old jurisdiction-based assessment system was transformed with the introduction of faceless assessment and appeal, thereby imparting greater efficiency, transparency, and accountability. The introduction of updated income tax returns, a new Form 26AS, and the prefilling of tax returns have made filing tax returns simpler and easier. The average processing time of returns has been reduced from 93 days in the year 2013-14 to a mere ten days this year, thereby making refunds faster,” she said in her speech.
The government has provisioned for an 11.6% growth in Central GST collections at Rs 10.7 lakh crore in FY25, up from the revised estimate of Rs 9.6 lakh crore for FY24.
Collections from Union excise duty, which is levied on petroleum products, are likely to be lower in FY24 at Rs 3 lakh crore, down from Rs 3.22 lakh crore in FY23. For FY25, the government expects excise duty collection to be Rs 3.2 lakh crore.
Collections from import duties are also likely to be lower in FY24 than were estimated in the previous budget. Proceeds from customs duty is likely to be Rs 2.18 lakh crore in FY24, down from the Rs 2.33 lakh crore budgeted for the year. In FY25, the import duty collection is likely to be Rs 2.3 lakh crore.