Centre unlikely to sustain 19.6% growth in direct tax mop-up in FY24

The central government may not be able to sustain the current 19.6 per cent growth rate in direct tax collections in 2023-24, as per a report in Economic Times. Nominal GDP, which is estimated to grow at 15.4 per cent in the current fiscal, may fall in 2023-24 on the back of threats of global recession. This would adversely impact tax collections. Net direct tax collection grew by 19.6 per cent to Rs.12.3 trillion during 1 April 2022-10 January 2023. This is 86.7 per cent of the budget estimates for current fiscal.