As of fiscal year 2020-21 – the first year fully affected by pandemic – the sharing of indirect tax in the total tax revenue of the Center has increased by more than 50%. Unlike direct taxes – like Income Tax and business taxbased on income – indirect taxes like tariffs, excise taxes etc are paid by both the rich and the poor.
Further analysis of the data reveals an increase in the share of indirect taxes in the overall government tax collection seems to be related to increased tax revenue from petroleum products. In 2014-15, the year since the data on tax collection from petrol and oil was available, the Center collected Rs 12.5 lakh in total tax revenue. Of these, Rs 6.9 lakh crore comes from corporate tax and income tax, accounting for 55.2% of the total. Another Rs 5.5 lakh crore is collected through the main indirect taxes, which account for 44.4% of total tax revenue.
Since 2014-15, the proportion of corporate tax has steadily decreased in Overall tax collection of the Center. From 34.5% in 2014-15, it has dropped to 22.6% in 2020-21. There has been an increase since 2020-21, but at 25.2%, the corporate tax’s share of gross tax is still significantly lower than in 2014-15.
During the same period, income tax’s share of total tax revenue increased from 20% in 2014-15 to more than 24% in 2019-20 and remains around that level. However, this increase of about 3 percentage points is too small to offset the decrease of more than 9 percentage points in corporate taxes. Even so, except for 2016-17, the share of direct taxes (corporate taxes plus income taxes) still accounted for more than 50% of total central government tax revenues, until this trend was reversed in 2016. 2020-21.
In the period from 2014-15, the proportion of indirect tax increased relatively steadily. From 44.4% in 2014-15, the stock has grown to 53.1% in 2020-21. Despite a slight decrease in 2021-22, the 50% share of indirect taxes in total revenues is still about 5.6 percentage points higher than the 2014-15 value.
In addition to the decrease in corporatetax share, another factor that has pushed the indirect tax share up is the increase in taxes on many types In 2014-15, the central government collected Rs 1.3 lakh crore as tax on corporate taxes. various petroleum products. This is 22.8% of total government indirect tax revenue. Since then, every consecutive year has seen a fairly steady increase in inpetroleum in indirect taxes. From 22.8% in 2014-15, the market share has increased to 39% in 2020-21. There has been a decline since then to 343% in 2021-22, but this is still much higher than the 2014-15 level.
Further analysis of the data reveals an increase in the share of indirect taxes in the overall government tax collection seems to be related to increased tax revenue from petroleum products. In 2014-15, the year since the data on tax collection from petrol and oil was available, the Center collected Rs 12.5 lakh in total tax revenue. Of these, Rs 6.9 lakh crore comes from corporate tax and income tax, accounting for 55.2% of the total. Another Rs 5.5 lakh crore is collected through the main indirect taxes, which account for 44.4% of total tax revenue.
Since 2014-15, the proportion of corporate tax has steadily decreased in Overall tax collection of the Center. From 34.5% in 2014-15, it has dropped to 22.6% in 2020-21. There has been an increase since 2020-21, but at 25.2%, the corporate tax’s share of gross tax is still significantly lower than in 2014-15.
During the same period, income tax’s share of total tax revenue increased from 20% in 2014-15 to more than 24% in 2019-20 and remains around that level. However, this increase of about 3 percentage points is too small to offset the decrease of more than 9 percentage points in corporate taxes. Even so, except for 2016-17, the share of direct taxes (corporate taxes plus income taxes) still accounted for more than 50% of total central government tax revenues, until this trend was reversed in 2016. 2020-21.
In the period from 2014-15, the proportion of indirect tax increased relatively steadily. From 44.4% in 2014-15, the stock has grown to 53.1% in 2020-21. Despite a slight decrease in 2021-22, the 50% share of indirect taxes in total revenues is still about 5.6 percentage points higher than the 2014-15 value.
In addition to the decrease in corporatetax share, another factor that has pushed the indirect tax share up is the increase in taxes on many types In 2014-15, the central government collected Rs 1.3 lakh crore as tax on corporate taxes. various petroleum products. This is 22.8% of total government indirect tax revenue. Since then, every consecutive year has seen a fairly steady increase in inpetroleum in indirect taxes. From 22.8% in 2014-15, the market share has increased to 39% in 2020-21. There has been a decline since then to 343% in 2021-22, but this is still much higher than the 2014-15 level.
