What is direct tax to GDP ratio in India? (2024)

What is direct tax to GDP ratio in India?

“The tax-to-GDP ratio should be at an all-time high next year at 11.7% from 11.6% this year and 11.2% in 2022-23. This is primarily because of direct taxes increasing from 6.1% of GDP in 2022-23 to 6.6% this year and 6.7% next year, which is more equitable,” Mr.

What is the GDP to tax ratio in India?

India's direct tax-to-GDP, which is the share of taxes in the overall output generated in the country, hit a 15-year high of 6.11 percent in 2022-23, time-series data released by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance showed.

Which country has the highest tax-to-GDP ratio?

What is India's debt to GDP ratio?

In the fiscal year ending March 31, 2023, the central government's debt stood at Rs 155.6 trillion, or 57.1 percent of the GDP. The debt of state governments stood at 28 percent of the GDP.

Which tax is more in India direct or indirect?

In the FY2023 budget estimates, in fact, direct tax collection was estimated at 16.42 lakh crore, while indirect tax was estimated at 29.08 lakh crore, as per the RBI data , pointing to India's reliance on indirect taxes.

Why is India's tax-to-GDP ratio so low?

Reasons for Low Tax-to-GDP Ratio:

The substantial informal sector in India fosters greater tax evasion, contributing to a low tax-GDP ratio. The dominance of the agricultural sector, constituting a significant portion of households, results in a large exemption from taxes.

Is India tax-to-GDP ratio low?

Even though India has improved its tax-to-GDP ratio in the last six years, it is still far lower than the average OECD (Organisation for Economic Co-operation and Development) ratio of 34%. India's tax-to-GDP ratio is lower than some of the other developing countries.

What is an ideal tax-to-GDP ratio?

According to the World Bank, tax revenues above 15% of a country's gross domestic product (GDP) are a key ingredient for economic growth and poverty reduction.

Is tax in India high?

You will quickly see: that India becomes one of the highest taxed nations in the world. We often compare this to Nordic countries, where the taxes are around 55%. But, you have to account for free healthcare, education and social security (this is availed by the rich, middle class and poor alike).

Which country has highest direct tax?

1. Ivory Coast. The country with beach resorts, rainforests, and a French-colonial legacy levies a massive 60% personal income tax – the highest in the world.

How much loan did India get from the World Bank?

The World Bank lends around US$27.1 billion to India, which makes it the largest country of IBRD support. In September 2018, the World Bank Group began a new partnership with India.

How much money is India's debt?

At end-March 2022, India's external debt was placed at US$620.7 billion, recording an increase of US$47.1 billion over its level at end-March 2021. India's external debt was US$570 billion at the end of March 2021. It recorded an increase of US$11.6 billion over its level at end of March 2020.

How much debt is India in 2024?

In absolute terms, the Centre's total liabilities has more than doubled from Rs 90.84 lakh crore to Rs 183.67 lakh crore between 2018-19 and 2024-25. The previous doubling, from Rs 45.17 lakh crore in 2011-12, took seven years, one year longer.

Which city in India pays the most direct taxes?

Mumbai has the highest number of taxpayers in India. As of 2022-23, there are over 4.5 million taxpayers in Mumbai, which is more than any other city in India.

What is the largest direct tax in India?

Corporate Tax or Corporation Tax is a direct tax. Corporate tax is levied on the profits made by a company from their business, whether foreign or domestic. The corporate tax rates vary from 15% to 40%.

How much direct tax is there in India?

Broadly, direct taxes in India include income tax, corporate tax, and capital gains tax. These taxes are essential sources of revenue for the government and play a crucial role in financing public expenditure and promoting economic development.

Are taxes in India higher than us?

The maximum tax rates in all three aforementioned countries are higher than that in India. The maximum personal income tax rate is 54 per cent in Canada, 51.6 per cent in the US, and 45 per cent in Australia. Meanwhile, it is 30 per cent in India.

What is the China tax-to-GDP ratio?

China Tax revenue: % of GDP was reported at 12.1 % in Dec 2023. This records a decrease from the previous number of 12.3 % for Sep 2023. China Tax revenue: % of GDP data is updated quarterly, averaging 14.2 % from Mar 1995 to Dec 2023, with 116 observations.

What percentage of people in India are taxpayers?

Indians who pay income tax are a rare breed. In 2021-22, there were 20.9 million — or just over 2 crore — taxpayers. Population estimates for the same year pegged the Indian adult population at 943.5 million — that's 94-crore-plus Indian voters. So, taxpayers accounted for only 2.2% of the voting population.

Is India GDP growth rate good or bad?

While the RBI has projected growth to be 6.5 per cent, a report by SBI research on said, “Factoring the slight decline in economic activity in Q3 FY24, we estimate that GDP (Gross Domestic Products) should grow in the range of 6.7-6.9 per cent with a GVA (Gross Value Added) growth of 6.6 per cent.”

What happens to GDP when taxes decrease?

Further, reduced tax rates may boost savings and investment, leading to further production and reduced unemployment. Lowering taxes raises disposable income, allowing the consumer to spend more, which increases the gross domestic product (GDP). Supply-side tax cuts are aimed to stimulate capital formation.

Is India a low GDP country?

With an estimated GDP of more than 4.1 trillion dollars generated by a population of over 1 billion, India is among the highest population-based economies in the world. Additionally, as per the Economic Survey forecast, India will tend to grow 6.8% in 2023-24.

What is the direct tax-to-GDP ratio in the US?

In 2022, the United States had a tax-to-GDP ratio of 27.7% compared with the OECD average of 34.0%. In 2021, the United States was ranked 32nd out of the 38 OECD countries in terms of the tax-to-GDP ratio.

What is the tax-to-GDP ratio of Pakistan?

In the fiscal year 2022, Pakistan's tax collections reached only 10.4% of GDP, a trend that has been steadily declining. The federal government's tax expenditures increased from 1.3% of GDP in FY16 to 2.7% of GDP in FY22, putting further strain on revenue generation efforts.

Which country has the highest tax rate as a percentage of GDP in Asia?

Seven of the 19 Asian countries covered in this report (and for which data are available) had a tax-to-GDP ratio above the regional average: Japan (33.2%, 2020 figure), Korea (29.9%), Mongolia (24.0%), Armenia (22.7%), Georgia (22.6%), China (21.0%) and Kyrgyzstan (20.0%).