Rapid Fire
Trends in Tax Revenue Collection
- 24 Oct 2024
- 2 min read
Recently, a recent data released by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance revealed the trends in tax revenue collection for the FY 2023-24.
- Direct taxes surged to 56.72% of total revenue in FY24, the highest in 14 years while indirect taxes dropped to 43.28%.
- A Direct tax is imposed directly on the taxpayer and paid directly to the government by the persons (juristic or natural) on whom it is imposed.
- An indirect tax is one collected by an intermediary (like a store) from the person who ultimately pays it (the customer). The taxpayer can pass this tax on to others.
- Personal income tax (PIT) (Rs 10.45 lakh crore) was higher than corporate tax (Rs 9.11 lakh crore) collections.
- The direct tax-to-GDP ratio climbed to a 20-year high of 6.64%.
- Tax buoyancy grew to 2.12 in 2023-24.
- A tax buoyancy above 2 means tax revenues grew more than twice as fast as nominal GDP, reflecting strong tax collection growth.
- Top 3 Direct Tax Collection (States): Maharashtra (39%), Karnataka (12%) and Delhi (10.4%).
Read More: Rising Share of Personal Income Tax and Indirect Tax
