5 Things To Know About Government Tax Collections
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5 things to know about government Tax collections
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Transcript of 5 Things To Know About Government Tax Collections
5 things to know about government Tax collections
• The tax collection numbers for the fiscal year 2016-17 are out.• And despite the fears of demonetization, the numbers are up.• In fact, demonetization played a big role for the rise in tax collections.
Tax revenue numbersThe central government tax revenue collections jumped for the year ended March 31, 2017It rose by as much as 18% to Rs 17.10 lakh crore from 14.55 lakh crore the previous year.The government had expected to earn Rs 16.97 lakh crore as tax revenue.
#1
Demonetization and taxThis growth has come right on the heels of the demonetization drive by the government.The demonetization drive focussed on eliminating black money in the country. Expertsattribute the increase in revenues to the government’s measures to tackle black money. This is likely to have led to better compliance by taxpayers.
#2
Tax revenue break-upNet direct taxes grew by 14.2% in the year 2016-17. This brought in revenues equal to Rs 8.47 lakh crore for the government. Indirect tax collection grew by 22% to Rs 8.63 lakh crore for the fiscal 2016-17. The direct tax collections were in line with the revised estimates for the year. However, indirect tax collections exceeded these estimates
#3
Indirect tax numbersService tax collections rose by 20.2% in the year 2016-17. This is mainly due to the increase in service tax rate in the previous budget. At the same time, central excise duty collections rose by 33.9%. The rise is attributed to a drop in petroleum prices and an increase in excise duty by the government. Net custom duty collections grew by 7.4% to Rs 2.26 lakh crore.
#4
Direct tax numbersNet personal income tax collections grew by 21%. Net corporate tax receipts grew by 6.7% as compared to the previous year. The low rate of growth in corporate tax has been a cause for concern. This could indicate economic slowdown in the country, according to experts.
#5
To conclude:The tax collections for the year 2016-17 have been positive. The data shows that demonetization is likely to have helped convert black money into white money. This increase in tax revenue could help the government reduce its borrowing.
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