For FY23, the gross direct tax collection of the centre till October 8, 2022, stands for 8.98 trillion, 23.8 per cent, which is higher than mop up in 2021 during the same period, said FM. After the refund, the net tax collection stands at Rs 7.45 trillion, 52% of the FY23 Budget Estimate.

For the current financial year, the Union Budget for FY23 estimated a direct tax collection at Rs 14.20 trillion, against Rs 14.10 trillion collected in FY22. Between April 1 to October 8, the gross tax figure included a 32 per cent growth in personal income tax, which includes securities transaction tax proceeds and a 16.73 per cent increase in corporate tax revenues over the same period last year.

“The direct tax collection up to October 8, 2022, shows that gross collections are at Rs 8.98 trillion, which is 23.8 per cent higher than gross collections for the corresponding period of last year,” the finance ministry said.

In the year 2021, a refund of Rs 1,53 trillion has been issued, which is an increase of 81 per cent over the corresponding period. “With inflation reportedly running between 6 per cent and 7 per cent, it is imperative that tax collections show healthy growth above the inflation rate. Strong economic growth, coupled with better reporting, seems to be supporting the collection figures. While collections remain strong, the same also need to be supported by corporate investment cycles reviving after Covid,” said Rohinton Sidhwa, partner, Deloitte India.

But it remains to be seen if this will be enough to offset the expansion in food and fertiliser subsidy outlays in 2022 or if the finance ministry will need to impose cuts on non-priority expenditure to meet the fiscal deficit target of 6.4 per cent of GDP. Sunday. After the refund, net tax collection stands at Rs 7.45 trillion, 52% of FY23.