With the net direct tax collection till October closing in on Rs 6 lakh crore and average monthly GST mop-up likely around Rs 1.15 lakh crore this fiscal, the government’s tax collection kitty will surpass budget estimates this financial year, Revenue Secretary Tarun Bajaj said.
In an interview with PTI, Bajaj said the relief in excise duty on petrol and diesel and customs duty on edible oil will cost the exchequer about Rs 80,000 crore this financial year, and the revenue department will start calculating the tax mop-up position vis-a-vis budget estimates for this fiscal after the December advance tax number.
“After refunds also, we have touched almost Rs 6 lakh crore till October in direct taxes… It is looking good. Hopefully, we should exceed it. “Though we have given a lot of relief in indirect taxes in petrol, diesel and edible oil, also there are some sunset that have come in customs duty where the total benefit would be about Rs 75,000-80,000 crore, but still I think we should exceed the budgeted estimates on both direct and indirect taxes,” Bajaj said.
The government has budgeted a 9.5 per cent growth in tax collections at Rs 22.2 lakh crore for 2021-22 fiscal (April-March). In the last fiscal, the mop-up was Rs 20.2 lakh crore.
Of this, revenues from direct taxes are estimated to be around Rs 11 lakh, including Rs 5.47 lakh crore from corporate tax and Rs 5.61 lakh crore from income tax. With regard to the goods and services tax (GST) revenues, Bajaj said the collections in November will also be good numbers but December mop-up will be little lukewarm. The pick-up in collections will be visible again in the March quarter.
“The revenues are looking good, GST revenues are also good. We crossed Rs 1.30 lakh crore (in October). This month, I think we should get a good GST number. This was Diwali, our GST revenue will keep changing.
“But, i think the run rate should not go below Rs 1.15 lakh crore. Overall, we should do well in GST, excise duty and customs duty, also we will achieve our budgeted estimates. So, overall, we will exceed,” Bajaj said.
Customs collection in the current fiscal is budgeted at Rs 1.36 lakh crore, excise duty at Rs 3.35 lakh crore. Besides, Centre’s GST revenues, including compensation cess, are pegged at Rs 6.30 lakh crore.