The government's tax collection bucket will exceed budget forecasts this fiscal year, with net direct tax collection close to Rs 6 lakh crore and average monthly GST mop-up likely near Rs 1.15 lakh crore, Revenue Secretary Tarun Bajaj said.
Bajaj told PTI in a recent interview that excise duty relief on petrol and diesel, as well as customs duty relief on edible oil, will cost the exchequer about Rs 80,000 crore this fiscal year.
According to him, the revenue department will begin calculating the tax mop-up position in relation to budget estimates for this fiscal after the December advance tax numbers are released.
“After refunds also, we have touched almost Rs 6 lakh crore till October in direct taxes... It is looking good. Hopefully, we should exceed it,” Bajaj said.
He explained that even though a lot of relief in indirect taxes have been given in petrol, diesel and edible oil, certain customs duty sunsets have occurred, with a total benefit of approximately Rs 75,000-80,000 crore, “I think we should exceed the budgeted estimates on both direct and indirect taxes".
As reported, for the fiscal year 2021-22 (April-March), the government has budgeted a 9.5 per cent increase in tax collections, totalling Rs 22.2 lakh crore. The mop-up for the previous fiscal year was Rs 20.2 lakh crore.
Reportedly, the direct tax collections are expected to be about Rs 11 lakh crore, with Rs 5.47 lakh crore coming from corporate tax and income tax revenues of Rs 5.61 lakh crore.
Additionally, in terms of GST income, Bajaj predicted that November collections will be strong, while December collections will be lukewarm. In the March quarter, there will be a noticeable increase in collections.
According to Bajaj, "The revenues are looking good, GST revenues are also good. We crossed Rs 1.30 lakh crore (in October). This month, I think we should get a good GST number. This was Diwali, our GST revenue will keep changing.”
"But, I think the run rate should not go below Rs 1.15 lakh crore. Overall, we should do well in GST, excise duty and customs duty, also we will achieve our budgeted estimates. So, overall, we will exceed," he added.
The current fiscal year's customs collection budget is Rs 1.36 lakh crore, with excise duty at Rs 3.35 lakh crore. In addition, GST revenues at the Centre, including compensation cess, are estimated to be Rs 6.30 lakh crore.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.