Increased tax collection in the first quarter this fiscal shows that the economy is on the recovery path, Minister of State for Finance Pankaj Chaudhary said on Tuesday.
Net direct tax collection in the April-June quarter of the current fiscal is over Rs 2.46 lakh crore, as against more than Rs 1.17 lakh crore during the same period of the previous fiscal.
"Reasons for increase in the collections include revival of economic activities and positive sentiments among taxpayers during this current financial year, leading to increased income estimates and higher advance tax payments in the first quarter of the FY 2021-22 as compared to the corresponding period of FY 2020-21," he said in a written reply to the Rajya Sabha.
Net Indirect Tax (GST and non-GST) revenue collection in the first quarter of FY 2021-22 is Rs 3.11 lakh crore, he said. "The increased tax collection (Direct & Indirect) as reported in the first quarter of the current financial year as compared to the same period previous financial year shows that the economy is on the recovery path. Higher tax collection would enable Government in increasing public expenditure, which would have a positive impact on GDP," Chaudhary added.