Formal sector, administration raises tax kitty 29% in Apr-July from FY20

Year-on-year, the collections grew by 83%. This growth was misleading since it comes on a 30% drop in tax mop-up a year earlier

Tax collection has been one of the few parameters to have grown more than the pre-pandemic level in the first four months of the current financial year.

The Centre’s total tax collections before devolution to the states rose almost 29 per cent in the April-July period of financial year 2021-22 (FY22) over the corresponding period of FY20.  

To be sure, collections grew 83 per cent over the corresponding period in FY21, but this comparison is misleading as it comes on a 30 per cent fall in tax mop-up last year.

Experts attribute the growth over the pre-Covid period to the economic recovery, better