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Expressing optimism over tax collection, Finance Minister Nirmala Sitharaman has said that the trust-based taxation system introduced by the government has resulted in improved collections and increase in the number of return filings. She also complimented the department for achieving the highest-ever revenue collection of over Rs 14 lakh crore in the last fiscal and expressed hope that the momentum would continue in the current fiscal too. Direct tax collections surged to Rs 14.09 lakh crore in 2021-22, registering a year-on-year growth of 49.02 per cent on the back of strong growth in mop-up from individual and corporation tax. For the current fiscal, the government has projected the direct tax collection at Rs 14.20 lakh crore.

The minister said the government has addressed several legacy issues and removed structural deficiencies related to direct taxes with a view to foster ease of living and ease of doing business. The reforms introduced by the government in recent years have ensured a trust-based tax system. She said ‘the taxpayers on their part have vindicated this trust-based approach as evident from the trend of improved tax collections and increase in the number of income tax returns filed’.

On the administration side, she said an effective use of technology has been made to enhance taxpayer services, minimise discretion in decision making and improve transparency, fairness and speed of departmental processes. She said the Income Tax Department must be appreciated for having successfully implemented the policy of reforms introduced over the last few years and for having effectively reoriented itself as a taxpayer-centric organisation. The finance minister also urged Income Tax Department to prepare itself for the next 25 years of growth.