Earning more than expected: Government treasury filled with record tax collection, crossed Rs 27 lakh crore

On one hand, the general public is burdened with the burden of tax, while on the other hand, money is coming from tax in the government’s treasury. The Finance Ministry on Thursday released the details of the total tax collection in the financial year 2021-22. According to government data, there has been a strong growth of 49 percent in direct tax and 30 percent in indirect tax in 2021-22.

In the financial year 2021-22, the total tax revenue of the Modi government reached Rs 27.07 lakh crore with a record increase of 34 percent. This is about Rs 5 lakh crore more than the budget estimate. In the budget for 2021-22, the income from tax was estimated to be Rs 22.17 lakh crore. The tax revenue in 2020-21 was Rs 20.27 lakh crore.

According to the data, in the financial year 2021-22, the direct tax collection reached Rs 14.10 lakh crore with a sharp increase of 49 percent. Whereas there has been a 30 percent increase in indirect tax collection and it stood at Rs 12.90 lakh crore. Revenue Secretary Tarun Bajaj said that the direct tax collection was Rs 3.02 lakh crore more than the budget estimate of the last financial year. Income from customs duty has also increased by 41 per cent.

According to Tarun Bajaj, an increase in tax revenue reflects an improvement in the economy. He told that the collection of excise duty has also been more than the budget estimate. The tax-to-GDP ratio stood at 11.7 per cent in 2021-22. The tax-to-GDP ratio stood at 10.3 per cent in the financial year 2020-21. This is the highest since 1999.