Govt’s net tax revenues rise 5% in FY21: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has said the government’s net tax revenues grew 5 per cent in the fiscal year ended March 31, 2021 (FY21). The net tax (sum of direct and indirect taxes) revenue in 2020-21 was over Rs 14.24 lakh crore, a nearly 5 per cent growth from Rs 13.56 lakh crore in the previous financial year. However, non-tax revenue collection dipped 36 per cent to Rs 2.08 lakh crore in 2020-21 from over Rs 3.27 lakh crore in 2019-20. The government’s net revenue (tax+non-tax) collection in the last financial year declined 3.09 per cent to Rs 16.32 lakh crore.

Sitharaman said the government has taken many steps to boost both direct and indirect tax revenue collection, through curbing tax evasion, widening/deepening tax base, promoting voluntary compliance, reducing litigation and promoting digital transactions.

Besides, the total cess and surcharge collection under indirect taxes (GST+non-GST) increased 53 per cent to over Rs 4.39 lakh crore in 2020-21 as compared to the previous year. In 2018-19 and 2017-18, the cess collection under indirect taxes was Rs 2.67 lakh crore and Rs 2.17 lakh crore, respectively.