The government's gross tax revenue is projected to grow 11.46 per cent to Rs 38.31 trillion in the next fiscal (FY25), buoyed by 11.6 per cent growth in Goods and Services Tax (GST) collections. GST collection in 2024-25 is estimated to rise to Rs 10.68 trillion, an increase of Rs 1.1 trillion or 11.6 per cent.
As per the Interim Budget 2024-25, of the total tax collections, Rs 21.99 trillion is estimated to come from direct taxes (personal income tax + corporate tax), and Rs 16.22 trillion from indirect taxes (customs + excise duty +GST). In the current fiscal (FY24), the government estimates gross tax revenue to exceed the budget estimated by about Rs 76,000 crore. The budgeted tax revenue for current fiscal was Rs 33.61 trillion, while the revised estimate pegs it at Rs 34.37 trillion, as per the Interim Budget 2024-25.
Even though the corporate tax collections remained as per the FY24 budget estimates, the personal income tax collection is expected to overshoot budget estimates by over Rs 1.20 trillion in current fiscal. While the revised estimate for customs and excise duty collections has been lowered to Rs 2.19 trillion and Rs 3.08 trillion respectively, GST collections are estimated at the budgeted level of Rs 9.57 trillion in current fiscal ending March 31, 2024.
