The Centre’s gross direct tax collections up to October 8 this fiscal came in at Rs. 8.98 trillion, up 23.8% on year. Net of refunds, the collections were Rs. 7.45 lakh crore, 16.3% higher than in the year-ago period.
Refunds amounting to Rs.1.53 trillion have been issued during the period from April 1 to October 8, 2022 which are 81% higher than refunds issued during the same period in the preceding year.
“So far as the growth rate for corporate income tax (CIT) and personal income tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 16.73% while that for PIT (including securities transaction tax) is 32.3%. After adjustment of refunds, the net growth in CIT collections is 16.29% and that in PIT collections is 17.35% (PIT only)/16.25% (PIT including STT),” the finance ministry said in a statement.
The latest figures signal that tax collections have been somewhat strong since a decline witnessed in August. Collections of direct and indirect taxes (post-refunds) at Rs 1.51 trillion were down 8% in August, according to Controller General of Accounts data released recently.
In fact, net of devolution to states, the collections in August at Rs 33,882 crore were 71% lower than the year-ago level. The sharper decline in net receipts is due to a doubling of tax transfers to the states in August.
As a result, net (post-devolution) tax revenue growth fell to about 9% on year in April-August, 2022 compared with 26% in April-July, 2022.
Also, tax receipts from corporation tax, personal income tax, excise duty, customs duty and Central GST saw a year-on-year decline in collections in August 2022, as the benefit of the low base effect ceased to exist.
The goods and services tax (GST) collections have seen a gradual slowing in recent months. The gross GST receipts came in at Rs 1,47,686 crore in September (August transactions), reflecting a stabilisation of the monthly revenue from the consumption tax at above Rs 1.45 trillion.
Of course, the mop-up has remained above Rs 1.4 trillion mark for the seventh month in a row. Average monthly collections in April-September this fiscal was close to Rs 1.49 trillion, compared with Rs 1.23 trillion in FY22.
According to analysts, despite about Rs 1 trillion tax revenue loss due to a reduction in excise duty on petrol-diesel and import duties on select raw materials, the centre’s net tax revenues could exceed the FY23 budget target by about Rs 2 trillion due to buoyancy in direct taxes and goods and services taxes. On the non-taxes side, dividends from CPSEs could also exceed the budget target by Rs 10,000-20,000 crore in FY23.