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 2021-22 were ₹25.16 lakh crore, in comparison to ₹20.27 lakh crore a year ago.
- 49.7% of the total tax collections in 2021-22 were through direct taxes (i.e. income tax, corporate tax). The share of direct taxes in the total collections has been steadily decreasing from 56% in 2013-14 to 49.7% in 2021-22.
- 50.3% of the total tax collections in 2021-22 were through indirect taxes (i.e. GST, Customs duties, and excise duties). The share of indirect taxes in the total collections has been steadily increasing from 43.9% in 2013-14 to 50.3% in 2021-22.
GROWTH
- The total tax collections in 2021-22 increased by 24.1% in comparison to a modest 0.8% growth a year ago.
- Direct taxes recorded a record growth of 32.3% in 2021-22 after falling by 10% in 2020-21.
- Indirect taxes grew for the second consecutive year in 2021-22 recording a growth of 17%.
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