Robust tax collections have been giving confidence to the government that the economy is slowly coming back on track. Rather the view presented by IMF that India could be the fastest growing economy both this year and the next year gets seconded by the buoyant tax collections.
The period of April till July this year has seen a growth of 25 percent, which has been built by both healthy direct and indirect tax collections. Corporate tax data from April till July this fiscal has shown a growth of 35 percent.
On the other hand, the window of personal income tax has also seen a healthy growth of 50 percent from April-July this year. Indirect tax collections have also grown, reflecting that consumption is back in the economy.
Though critics said inflation too could be a reason for the extraordinary indirect tax growth but GST collections are reflecting a good trend. Continuously remaining above the Rs 1.40 lakh crore mark, GST collections have given confidence to the government and economists.
On a monthly basis, GST collections grew by 20 percent in April, followed by 44 percent in May, 56 percent in June, 28 percent in July, and 28 percent in August.
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