The Union government’s total tax revenue jumped 34% to ₹27.07 lakh crore in 2021-22, according to provisional official data. The revenue collections in the previous financial year were ₹ 20.27 lakh crore. High revenue collections are led by 49% growth in direct taxes and 20 per cent growth in indirect taxes.
Direct tax collections in the financial year ended March 31, 2022 is ₹14.10 lakh crore and indirect tax at 12.90 lakh crore. The decrease in tax collection in the two years 2019-20 and 2020-21 is due to the disruption in economic activity.
India’s Finance Ministry has praised the tax-efficient steps taken by the government under its mission to push for a Digital India. E-way bills, pre-filled tax returns and use of data analytics and artificial intelligence have helped reduce tax evasions, it said.
