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Structural weakness

India needs to overhaul the tax system

Indian Economy | Gross domestic product | Lockdown

Business Standard Editorial Comment  |  New Delhi 

recovered swiftly towards the end of the last fiscal year with a pickup in economic activity. Gross grew 0.73 per cent in 2020-21, surpassing the revised estimate by Rs 1.24 trillion. Better than expected revenue collection also resulted in a lower than projected . The Union government’s as a percentage of (GDP) improved to 10.25 per cent, compared to 9.88 per cent in the previous year. However, overall improvement in tax collection was largely on account of higher duty on petroleum products. Excise duty collection went up by over 60 per cent during the year. Higher indirect tax collection also pushed its share in total collection to 5.46 per cent of GDP, compared to direct tax collection at 4.79 per cent.



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First Published: Thu, June 03 2021. 22:24 IST