Corporate tax collections have risen 34% in the current fiscal year to July 31, the finance ministry said on Friday, without detailing absolute figures for revenue collections.
“Corporate tax recoveries in fiscal year 2022-23 (through July 31, 2022) show robust growth of 34% compared to corporate tax recoveries in the corresponding period of FY 2021-22 @FinMinIndia,” the Income Tax Department said in a series of tweets.
In 2021-22, corporate tax collections amounted to Rs 7.23 lakh crore, a growth of more than 58% from 2020-21, he said. “Even compared to collections in fiscal year 2018-19 (pre-COVID period), collections in fiscal year 2021-22 are more than 9% higher. The positive growth trend continues, but for the overall impact of the COVID-19 pandemic in fiscal year 2020-21, when corporate tax recoveries were temporarily hit,” he said. -he declares.
This indicates that “the simplified tax regime with low rates and no exemptions has delivered on its promises,” he said.
According to data released by the Comptroller General, corporate tax collections stood at Rs 1.46 lakh crore in April-July last fiscal year. According to the latest government data, in April-June, the government collected Rs 1.61 lakh crore in corporation tax, up 29.84% year-on-year.
Newsletter | Click to get the best explainers of the day delivered to your inbox
Earlier in the day, some opposition leaders pointed to the loss of revenue from the corporate tax cut and linked it to the ongoing debate over handouts by political parties.
Under the new regime introduced in September 2019, the corporate tax rate for all existing companies has been reduced to 22% (with no surcharge or deductible), from 30% previously. A 15% tax rate has been announced under Section 115BAB for newly incorporated domestic companies, which make new investments by March 31, 2023, for manufacturing, production, research or distribution of such articles or manufactured articles. This was extended by one year in this year’s budget until March 31, 2024.