Corporate tax collection up 55% to ₹7.1 lakh cr in FY22
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Minister of state in the finance ministry Pankaj Chaudhary today said the country collected corporate tax worth ₹7,12,037 crore in FY 2021-22, a huge leap of 55% from ₹4,57,719 crore in the previous fiscal year. The corporate tax collected in FY21, however, saw a decline from ₹5,56,876 crore collected in FY20.
The data shared by the minister in the Rajya Sabha shows the percentage of net corporate tax to GDP, at current prices, stood at 3.01% in FY22. In FY21, the percentage of net corporate tax to GDP declined to 2.31% from 2.77% in the previous fiscal year. In FY18 and FY19, the percentage of net corporate tax to GDP was 3.34% and 3.51%, respectively.
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The government charges 30% corporate tax on domestic companies, plus a surcharge of 7% and 12% under the I-T Act if the net income ranges from ₹10 crore and more.
The state and UT-wise data show Maharashtra collected the highest corporate tax at ₹2,85,132.25 crore in FY22, followed by Delhi at ₹10,5751.38 crore and Karnataka at ₹79,755.88 crore. Among bigger states, the corporate tax collected by Tamil Nadu in FY22 stood at ₹44,255.8 crore; Gujarat at ₹34,059.93 crore; and Andhra Pradesh ₹25,772.11 crore.
On the GST compensation funds due to be disbursed to states, the minister stated that taking into account ₹1.10 lakh crore for FY 2020-21 and ₹1.59 lakh crore for FY 2021-22 released to states/UTs as back-to-back loans instead of GST compensation, the entire GST compensation dues of them has been cleared up to May 31, 2022. "This decision was taken despite the fact that only about ₹ 25,000 crore was available in the GST Compensation Fund. The balance of around ₹62,000 crore was released by the Centre from its own resources pending collection of cess," he clarified.
On the same line, the Centre also released ₹17,000 crore to states on November 24, 2022, from the consolidated fund of India against the pending GST compensation for April-June 2022, he said.
On the percentage of cess and surcharges in gross tax revenue of the Centre in the last three years, the finance ministry stated that in FY2021-22, the government collected gross tax revenue of ₹25.16 lakh crore. The percentage of cess and surcharge in the gross tax revenue stood at 28.1%, up from 25.1% in 2020-21 when the Centre collected tax revenue of ₹20.27 lakh crore. In FY20, the percentage of cess and surcharge in total tax revenue of ₹20.10 lakh crore stood at 18.2%.
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