Direct tax-GDP ratio hits 24-year high in FY24

Direct tax mopup rises 18%, outpacing economic growth; buoyancy at 2.12

- HARSH KUMAR

The share of direct taxes in gross domestic product (GDP) rose to a 24-year high of 6.64 per cent during 2023-24 (FY24), while direct tax buoyancy improved to 2.12 compared to the preceding year, according to official data released on Thursday.

Direct tax collections increased more than economic growth during FY24. While nominal GDP grew by 8.42 per cent during the year, direct tax collections rose by 17.82 per cent, according to data released by the Central Board of Direct Taxes.

A year earlier, in 2022-23 (FY23), nominal GDP grew by 15.11 per cent, but direct tax collections rose by 17.79 per cent. Thus, direct tax buoyancy was 1.18 during that year.