Various measures taken by Government contribute to increase in tax collection

Various factors like rapid economic recovery post COVID, better compliances due to various measures taken by Government have contributed to increase in tax collection. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Lok Sabha today.

Giving more details, the Minister stated the details of collection of Central taxes during the F.Y. 2021-22 as compared to F.Y. 2020-21 is as under: 

*Source: Provisional Accounts

The details of tax collection under Service Sector and Manufacturing Sector are as under:-

(Rs. in Crore)

^ The value of collection/revenue derived from challan data based on payment date.

(Rs.in Crore)

# Source: DGIT (Systems), CBDT – based on information disclosed in Schedule ‘Nature of Business’

The Minister stated that among other steps, the following has been done towards becoming a five trillion dollar economy and beyond: -

• The Government increased its capex budget by about 35 per cent in 2021-22 and again by another 35 per cent in 2022-23. In 2022-23, the budget allocation for capex after including the allocation to the States is Rs. 10.68 lakh crore, which is 4.1 per cent of GDP.
• The drive towards privatization as announced in Budget 2021- 22 is now complemented by PM Gatishakti Scheme announced in 2022-23 Budget, to ensure inter-ministerial coordination in infrastructure building for economic transformation.
• The Production Linked Incentive Scheme, which was initially announced as a major component of Atmanirbhar Bharat Mission, has been expanded to cover 14 sectors, which together with National Infrastructure Pipeline of Projects, will boost investment and growth in the economy.
• The Government has recapitalised banks, merged them and strengthened their balance sheets so that bank lending can grow faster.

The Minister stated that the measures taken in the past will also help the country become a five trillion dollar economy. These include, the Minister stated, introduction of Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), reduction in Corporate Tax Rate, Rationalization of Labour Laws, among others, which have also improved Ease of Doing Business.

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