Catching up tax on net income in fiscal year 22 to Rs 7.4 trn, Rajya Sabha informed

The Centre’s net tax revenue from April to December 7 stood at Rs 7.39 trillion, Minister of State (MoS) for Finance Pankaj Chaudhary told the Rajya Sabha on Tuesday.

This includes Rs 3.63 trillion in corporate taxes, Rs 3.61 trillion in personal income tax and Rs 15,375 crore in other income taxes including the securities transaction tax. (STT). In a written response, the Defense Ministry said net income tax collections in fiscal year 21, affected by the lockdown, amounted to Rs. 45 trillion. Collections during the pre-pandemic year (FY20) were Rs 10.51 billion. In FY19, the cleanup was 11.38 trillion rupees.

With almost four months remaining to the end of fiscal year, collections through December 7 represented almost 80 percent of the full year collections of FY21 and 70 percent of FY20. therefore shows encouraging signs of recovery.

Budget officials are convinced that the budgeted goal of collecting net of taxes (direct and indirect) of Rs 15.45 trillion will be exceeded. Gross goods and services tax (gross GST) collections for November stood at Rs 1.32 trillion, the second highest not only this year, but since the introduction of the national tax. According to another response from Rajya Sabha’s Ministry of Finance, the total gross GST collections for April-November amounted to Rs 7.02 trillion, against Rs 8.66 trillion for the whole of FY21 and Rs 9.44 trillion for FY20.

However, despite encouraging tax revenues, some fear that the fiscal deficit target of 6.8 percent of GDP for the year will still not be met. This is due to higher than expected spending due to the higher burden of fertilizer subsidies, the expansion of the free food program, measures announced to stimulate growth, and additional spending on the purchase of vaccines. Calculations on the back of the envelope show that the additional spending for the year could already exceed 2.5 trillion rupees. Some fear that the disinvestment target of Rs 1.75 trillion will not be reached.

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