Direct tax collections up by 31% in FY23: Finance Ministry

The growth in revenues will be driven by higher demand for Business Process Management (BPM) services from global clients, over the coming years

November 14, 2022

The country’s Information Technology (IT) industry is currently worth US$ 44 billion

The industry has been estimated to grow at a rate of over 14% in FY22

The IT sector aims to reach US$ 72-75 billion in total revenue by 2027-2728

Out of the Indian BPM industry’s 1.4 million employees, 10% comprises workers dealing with core technology

Gross direct tax collections have increased by 31% to INR 10.54 trillion in FY23, driven by the mop-up of personal income tax, according to a statement from the Ministry of Finance. 

According to the report, direct taxes have reached 61.31% of the budget target for FY23. They stood at INR 8.71 trillion, including both personal and corporate taxes. 

Media reports said that the budget’s estimate for direct tax collection stood at INR 14.20 trillion for FY23, compared to INR 14.10 trillion collected in FY22.

Between April 1 and November 10 of this fiscal, refunds worth INR 1.83 trillion were issued. The statement further added that gross tax collections rose by 30.69% from FY22, where the gross corporate tax increased by 22.03%, and Personal Income Tax collections rose by 40.64%.

Implication

This is a positive development as tax collection is an indicator of economic activity in any country.

Source: The Hindu

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