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Budget 2025: Charting a new growth path with a boost to the tax net

Higher collections have also resulted in calls to use the opportunity to simplify the goods and services tax structure

1 min read Last Updated : Feb 02 2025 | 12:09 AM IST

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Challenges

* Reduction in corporation tax share in tax receipts over the past 10 years, coupled with the rise in income tax, has shifted the tax burden on individuals

* Higher collections have also resulted in calls to use the opportunity to simplify the goods and services tax structure, which lies outside the ambit of Union Budget Takeaways - Despite income tax relief for the middle class, gross tax receipts as a percentage of GDP are projected to remain stable at

12 per cent for FY26

- Tax buoyancy is projected to exceed 1 per cent for FY26, indicating steady tax growth despite a decline from 1.15 per cent in FY25 to 1.07 per cent in FY26