Higher tax collection in Q1 shows economy on recovery path: Govt
Reasons for the increase in the tax collections include the revival of economic activities and positive sentiments among taxpayers.
The economy is on the recovery path as tax collections in the first quarter this fiscal have shown a significant increase, Pankaj Chaudhary, minister of state for finance said on Tuesday.
In the April-June quarter of the current fiscal, the net direct tax collection was over Rs 2.46 lakh crore, as against more than Rs 1.17 lakh crore during the same period of the previous fiscal.
“The reasons for the increase in the collections include the revival of economic activities and positive sentiments among taxpayers during this current financial year, leading to increased income estimates and higher advance tax payments in the first quarter of the FY 2021-22 as compared to the corresponding period of FY 2020-21,” Chaudhary said in a written reply to the Rajya Sabha.
In the first quarter of FY 2021-22, the net indirect tax (GST and non-GST) revenue collection was Rs 3.11 lakh crore.
“The increased tax collection (Direct & Indirect) as reported in the first quarter of the current financial year as compared to the same period previous financial year shows that the economy is on the recovery path. Higher tax collection would enable Government in increasing public expenditure, which would have a positive impact on GDP,” Chaudhary added.
Download Money9 App for the latest updates on Personal Finance.
