Net direct tax collections rose 17.7% to nearly £196 bn during the last financial year, surpassing the revised estimate and providing comfort to the Centre to close the year with healthier than expected fiscal deficit.
The Centre has already surpassed the indirect tax collection target for 2023-24 and some savings are expected. The Centre had budgeted for a fiscal deficit of 5.8% of GDP in the revised estimates for the year. One of the variables to watch out for will be the nominal GDP numbers, with the revised data due to be released.
In the revised estimates, the Centre had accounted for net direct tax collections, comprising income tax, corporation tax and securities transaction tax of £195 bn. According to provisional numbers released by the Central Board of Direct Taxes, collections were estimated at a shade under £234 bn, a growth of 18.5%. During the year, refund payments rose 22.7% to £38 bn, an official statement said.
It also pegged the gross corporation tax mop-up at £113 bn, 13% higher than the previous year, while on a net basis it went up 10.3% to £91 bn. Gross personal income tax collections, including STT, were estimated 24.3% higher at just over £120 bn while on a net basis it was £104 bn, rising 25.2% compared to the previous year.
