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 2023-24 were ₹34.37 lakh crore, in comparison to ₹30.54 lakh crore a year ago.
- 56.6% of the total tax collections in 2023-24 were through direct taxes (i.e. income tax, corporate tax), in comparison to 54.3% in 2022-23.
- 43.4% of the total tax collections in 2023-24 were through indirect taxes (i.e. GST, Customs duties, and excise duties), in comparison to 45.7% in 2022-23.
GROWTH
- The total tax collections in 2023-24 increased by 12.5% in comparison to a growth of 12.7% a year ago.
- Direct taxes recorded a record growth of 17.2% in 2023-24 in comparison to a growth of 17.8% a year ago.
- Indirect taxes recorded a growth of 7% in 2023-24 in comparison to a growth of 7.3% a year ago.
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