Higher tax collection, a precursor to growing economy
Sanket Dewarkar / 05 Apr 2017
Corporate Income Tax revenue grew 6.7 percent, after adjusting for refunds, and personal income tax revenue has also increased by 21 per cent, net of refunds.
The government has exceeded the tax collection estimates for 2016-17 fiscal by Rs 17.10 lakh crore. It was the highest in last 6 years and also surpassed the revised tax collection target
The collection of direct taxes has increased 14.2 percent to Rs 8.47 lakh crore compared to the financial year 2015-16.
Corporate Income Tax revenue grew 6.7 percent, after adjusting for refunds, and personal income tax revenue has also increased by 21 per cent, net of refunds.
In indirect tax collection central excise collections during April-February jumped 33.9 percent to Rs 3.83 lakh crore as compared to Rs 2.86 lakh crore in the same period of previous financial year.
It is often seen that, direct tax (income tax, corporate tax, property tax) is harder to collect than the indirect taxes (production, consumption, international trade) because of evasion and avoidance.
The companies which are paying advanced direct tax without any avoidance, intend to have a good top line growth as compared to those which avoid or fail to pay.
But due to demonetisation many people and companies used excess cash to make payments in advance which increased the revenue through tax collection.