Highest direct tax buoyancy in 15 years recorded in FY22 : CBDT
- The CBDT has said that direct tax buoyancy was at a record high of 2.52 in FY22, the highest in the last 15 years.
- Tax buoyancy refers to the responsiveness of tax revenue receipts to changes in national income. A tax buoyancy greater than 1 signifies that tax revenues grow at a faster rate than the growth in national income.
- The net direct tax collections have risen by an impressive 121% from Rs. 6.38 trillion in FY14 to Rs. 14 trillion in the 2021-22 fiscal year. The growth is 160% if the period between FY14 to FY23 is taken into account.
- The gross direct tax collections also showed an impressive growth of over 126.73% in FY 2021-22, reaching Rs. 16 trillion from Gross Direct Tax Collections of Rs. 7 trillion in FY 2013-14.
- Moreover, the gross direct tax collections have increased by over 172.83% in FY 2022-23, reaching Rs. 19 trillion (provisional) from Gross Direct Tax Collections of Rs. 7 trillion in FY 2013-14.
- The direct tax to GDP ratio rose from 5.62% in FY 2013-14 to 5.97% in FY 2021-22. Furthermore, the cost of collection has decreased from 0.57% of total collection in FY 2013-14 to 0.53% of total collection in FY 2021-22.