BUDGET
FY26 gross tax mop-up pegged at INR 42.70 tln, up 10.8%% on year
This story was originally published at 15:07 IST on 1 February 2025
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NEW DELHI – The Budget on Saturday projected the gross tax collections for the next financial year starting April at INR 42.70 trillion, up 10.8% from the revised estimate of INR 38.53 trillion for FY25.
The revised estimate for tax collections in FY25 is INR 132.85 billion higher than the Budget estimate of INR 38.40 trillion. The revised estimate shows tax collections growing at 11.2% on year in FY25 compared with the Budget estimate of 10.8% growth.
Of the total tax collections in FY26, the government aims to collect INR 25.20 trillion from direct taxes and INR 29.28 trillion from indirect taxes.
The government's total tax collections in Apr-Dec were INR 27.50 trillion, up 10.8% from a year ago.
The government's net tax collections after devolution to states and transfer to the National Calamity Contingent Duty to the National Disaster Response Fund is pegged at INR 28.37 trillion in FY26, up 11.0% on year. Though the Finance Commission has recommended devolution of 41% of tax collected to states as their share, the actual transfer will be only be 33.3% in FY26 because of increased dependence on surcharges and cess. Surcharges and cesses are not devolved to the states.
The following table details the government's tax collection targets as per the Budget proposals (in billion rupees):
2025-26 Budget Estimate | 2024-25 Revised Estimate | 2024-25 Budget Estimate | Yr-on-yr % change (BE vs RE) | |
Corporate Tax | 10,820.00 | 9,800.00 | 10,200.00 | 10.4% |
Income Tax | 14,380.00 | 12,570.00 | 11,870.00 | 14.4% |
Customs | 2,400.00 | 2,350.00 | 2,377.45 | 2.1% |
Excise Duties | 3,170.00 | 3,050.00 | 3,190.00 | 3.9% |
Service Tax | 1.00 | 1.00 | 1.00 | 0.0% |
GST | 11,780.00 | 10,618.99 | 10,618.99 | 10.9% |
CGST | 10,108.90 | 9,084.59 | 9,108.90 | 11.3% |
GST Compensation Cess | 1,671.10 | 1,534.40 | 1510.09 | 8.9% |
Tax on UTs | 101.33 | 94.56 | 94.26 | 7.2% |
Other Taxes | 50.00 | 50.00 | 50.00 | 0.0% |
Total | 42,702.33 | 38,534.55 | 38401.70 | 10.8% |
End
Reported by Priyasmita Dutta and Christina Titus
Edited by Saji George Titus
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