Tax Collection: You must have seen that the Central Government and State Governments announce schemes worth thousands of crores of rupees. In such a situation, a question might arise in your mind that where do these crores of rupees come from. In fact, most of it comes from the public in the form of taxes, which is implemented by the government in the form of schemes. Do you know what is the share of tax in the government’s revenue and how does the government collect taxes from the people?
How many types of taxes does the government collect?
The biggest income of the government comes from tax collection. This happens in two ways, first is direct tax and second is indirect tax. The government collects many types of taxes, which include income tax, GST, custom duty, corporate tax, government bonds, non-debt capital and custom duty etc.
What role does tax play in revenue?
Overall, taxes contribute 60 to 70 percent of the government’s income. Now you might be wondering where the remaining 30% money comes from? There are many ways to do this, the government has a stake in everything you use in your everyday life. That is, if you pay your electricity and water bill, then money also goes into the government treasury, apart from this there are other methods like license distribution, passport-visa etc.
What do the figures say?
Now talking about the figures, in the Union Budget for the financial year 2021-22, the total tax revenue was estimated to be Rs 22.17 lakh crore, compared to the estimate, the total revenue collection was Rs 27.07 lakh crore. Which was about Rs 5 lakh crore more than the budget estimate. This was 34% more than last year’s revenue collection of Rs 20.27 lakh crore. That means every year the government treasury is being filled with the money coming from taxes and this collection is continuously increasing.