Lok Sabha Question No. 3480 (UNSTARRED), answered on 2022-08-08
Subject: Tax Collection of Service and Manufacturing Sectors
Ministry: FINANCE
Asked by: Ram Kripal Yadav, Rajiv Ranjan (Lalan) Singh, Dinesh Chandra Yadav

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTION NO.3480

TO BE ANSWERED ON MONDAY, AUGUST 8, 2022 SRAVANA 17, 1944 (SAKA)

## TAX COLLECTION OF SERVICE AND MANUFACTURING SECTORS

3480. SHRI RAM KRIPAL YADAV: SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH: SHRI DINESH CHANDRA YADAV:

Will the Minister of FINANCE be pleased to state:

- (a)  whether it is true that higher tax collection in the last financial year is due to boom in the Service Sector;
- (b)  if so, the details thereof;
- (c)  whether the Government has any separate data of tax collection available from the Service Sector and Manufacturing Sector respectively ;
- (d)  if so, the details thereof; and
- (e)  the steps being taken by the Government to achieve the target of five trillion dollar economy?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) & (b): The details of collection of Central taxes during the F.Y. 2021-22 as compared to F.Y. 2020-21 is as under:

( Rs. in Crore)

|              | Gross Tax Revenue*   |
|--------------|----------------------|
| F.Y. 2020-21 | 20,27,104            |
| F.Y. 2021-22 | 27,08,291            |

* Source: Provisional Accounts

Various factors like rapid economic recovery post covid, better compliances due to various measures taken by Government have contributed to increase in tax collection.

- (c) & (d): The details of  tax collection under Service Sector and Manufacturing Sector  are as under:-

## (Rs. in Crore)

| GST^           | GST^         | GST^             |
|----------------|--------------|------------------|
| Financial Year | Manufacturer | Service Provider |
| 2021-22        | 4,88,215     | 4,38,921         |

| Direct Tax #    | Direct Tax #   | Direct Tax #   |
|-----------------|----------------|----------------|
| Assessment Year | Manufacturer   | Service Sector |
| 2021-22         | 1,91,908.99    | 3,48,807.70    |

# Source:  DGIT  (Systems),  CBDT  -  based  on  information  disclosed  in  Schedule  'Nature  of Business'

(e): Towards becoming a five trillion dollar economy and beyond, the Government increased its capex budget by about 35 per cent in 2021-22 and again by another 35 per cent in 2022-23. In 2022-23, the budget allocation for capex after including the allocation to the States is Rs.10.68 lakh  crore,  which  is  4.1  per  cent  of  GDP.  The  drive  towards  privatization  as  announced  in Budget  2021-  22  is  now  complemented  by  PM  Gatishakti  Scheme  announced  in  2022-23 Budget, to ensure inter-ministerial coordination in infrastructure building for  economic transformation. The Production Linked  Incentive Scheme, which was initially announced as a major component of Atmanirbhar Bharat Mission, has been expanded to cover 14 sectors, which together with National Infrastructure Pipeline of Projects, will boost investment and growth in the  economy.  The  Government  has  recapitalised  banks,  merged  them  and  strengthened  their balance sheets so that bank lending can grow faster. The measures taken in the past will also help the  country  become  a  five  trillion  dollar  economy.  These  include  introduction  of  Goods  and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), reduction in Corporate Tax Rate, Rationalization  of  Labour  Laws,  among  others,  which  have  also  improved  Ease  of  Doing Business.

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