Centre's indirect tax share in GDP rises in FY21 after four years
June, 02nd 2021
After a gap of four years, the contribution of the Centre’s indirect taxes in gross domestic product (GDP) has exceeded that of direct taxes, underscoring the regressive taxation system in the county. The share of direct tax in GDP fell to a 15-year low in 2020-21 (FY21) at 4.79 per cent, while that of indirect taxes grew to a four-year high of 5.48 per cent.
The increase in indirect taxes was primarily due to a 63 per cent year-on-year (YoY) jump in excise duty collections to Rs 3.89 trillion and a 23-per cent YoY increase in Customs duty to Rs 1.35 trillion. On the other hand, ...