New Delhi: The government is expected to maintain its target of collecting Rs 33.6 lakh crore in taxes for the current fiscal year, according to a senior finance ministry official. The official stated that the direct tax collection has already seen a 20% increase, while indirect taxes have risen by 5%. With the data available for the first eight months of the fiscal year, the collections are on track to meet the budgeted estimates. The Revised Estimates will adhere to the initial Budget numbers, which projected a 10% increase in tax collections from the previous year.
The Budget for the fiscal year 2023-24 had set an ambitious target of Rs 33.6 lakh crore for tax collections, a significant rise of 10% from the previous year’s collection of Rs 30.5 lakh crore. Despite economic uncertainties and challenges posed by the ongoing pandemic, the government aims to achieve this goal.
The senior finance ministry official explained, So far, direct tax collection is up by about 20% and indirect taxes higher by 5%. We have data till the eight months of the fiscal and usually the collections are better in the first half. So, at the moment, we will stick to the Budget numbers in our Revised Estimates.
The government’s optimism is driven by the strong performance in direct tax collection, which includes taxes on income and profits. A robust 20% growth indicates increased economic activity, including higher earnings for individuals and businesses. On the other hand, indirect taxes, such as goods and services tax (GST), have seen a 5% increase. These figures showcase a positive trend and provide confidence that the tax collection target can be met.
While challenges remain, particularly due to the lingering effects of the pandemic on various sectors, the government’s commitment to achieving the tax mop-up target is unwavering. The Revised Estimates will take into account any changes in revenue projections and assess the feasibility of meeting the budgeted target. The finance ministry will closely monitor the collection trends in the following months to ensure that the necessary measures are taken to bridge any potential gaps.
The tax collection target is crucial for the government’s fiscal planning and developmental initiatives. It enables the funding of important projects in sectors like infrastructure, healthcare, education, and defense. Achieving the target will provide stability and support economic growth in the country.
The finance ministry remains optimistic about meeting the tax collection target for the current fiscal year. The combination of a 20% increase in direct tax collection and a 5% rise in indirect taxes supports the belief that the goal can be achieved. As the fiscal year progresses, the government will closely monitor the collection trends and make any necessary adjustments to ensure that the budgeted estimate of Rs 33.6 lakh crore is met. This commitment reflects the government’s determination to drive economic recovery and support the welfare of the nation.
