Tax Revenues
Tax revenue is the income that is gained by governments through levying taxes on the incomes and wealth of individuals and corporations, and on the goods and services produced, exported, and imported. Taxation is the primary source of government revenue. Tax revenue forms a part of the Revenue Budget, which in turn is part of the Union Budget. Total tax revenue as a percentage of GDP indicates the share of the country's output collected by the government through taxes.
The government collects taxes though two primary means:
- Direct Tax: Tax that is paid directly to the government by the person or company on whom it is levied. eg. Income tax, wealth tax, corporation tax and property tax.
- Indirect Tax: Tax that is collected by intermediaries from individuals and corporations who bear the burden of the tax and passed on to the government. eg. Goods and Services Tax (GST).
Tax revenue is the income that is gained by governments through levying taxes on the incomes and wealth of individuals and corporations, and on the goods and services produced, exported, and imported. Taxation is the primary source of government revenue. Tax revenue forms a part of the Revenue Budget, which in turn is part of the Union Budget. Total tax revenue as a percentage of GDP indicates the share of the country's output collected by the government through taxes.
The government collects taxes though two primary means:
- Direct Tax: Tax that is paid directly to the government by the person or company on whom it is levied. eg. Income tax, wealth tax, corporation tax and property tax.
- Indirect Tax: Tax that is collected by intermediaries from individuals and corporations who bear the burden of the tax and passed on to the government. eg. Goods and Services Tax (GST).
SUBJECT Variables
TOTAL COLLECTIONS
- Total tax collections in 2025-26 are budgeted at ₹42.53 lakh crore, compared to ₹38.53 lakh crore actual estimated collections a year ago.
- 59.2% of the total tax collections budgeted for in 2025-26 are through direct taxes (i.e. income tax, corporate tax), compared to 58.1% estimated in 2024-25.
- 40.8% of the total tax collections budgeted for in 2025-26 are through indirect taxes (i.e. GST, Customs duties, and excise duties), compared to 41.9% estimated in 2024-25.
GROWTH
- The total tax collections budgeted in 2025-26 are 10.41% higher compared to a growth of 11.2% a year ago.
- Direct taxes are budgeted to grow by 12.7% in 2025-26 compared to 14.4% a year ago.
- Indirect taxes are budgeted to grow by 7.2% in 2025-26 compared to 7.1% a year ago.
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