Corporate Tax, Customs Spike The Most As Gross Tax Revenue Surges In FY22

While India's fiscal deficit settled lower than estimates at 6.7% of the GDP in FY22, tax revenue was ahead of the Finance Ministry's expectations.

Gross tax collections stood at Rs 27.08 lakh crore, according to the provisional numbers released by the Controller General of Accounts. That's a 34% growth over the actual mop-up for FY21. And it compares with budget and revised estimates of Rs 22.17 lakh crore and Rs 25.16 lakh crore, respectively.

The government has budgeted for a 9.6% growth in gross tax revenue in FY23 at Rs 27.57 lakh crore. But better-than-expected tax collection in FY22 means that the budget estimate is only 1.8% over the previous fiscal. And the collection could surpass the estimate this fiscal as well, given the tax buoyancy, despite the reduction in the road and infrastructure cess.

As per provisional figures shared in April 2022, tax revenues have jumped 34% since FY21. (Image: Revenue Department, Ministry of Finance)

CAG's provisional figures show that the corporate taxes rose the most at 55.5% to Rs 7.12 lakh crore among direct taxes. Customs duty collection saw a spike of 47.7%—the highest among indirect taxes—at Rs 1.9 lakh crore.