Government of India

Ministry of Finance

Department of Revenue

LOK SABHA

UNSTARRED QUESTION NO. 3857

TO BE ANSWERED ON FRIDAY, MARCH 24, 2017

CHAITRA 3, 1939 (SAKA)

TAX IN PROPORTION TO THE GDP

3857: SHRI ANANTKUMAR HEGDE:

Will the Minister of Finance be pleased to State:

(a) whether the amount of revenue recovered as tax in proportion to the GDP is 17.15 per cent annually in the country;

(b) if so, the details thereof;

(c) whether cess and surcharge along with taxes are imposed on the consumers in the country;

(d) if so, the details thereof; and

(e) whether the amount collected as cess and surcharge is almost 25 per cent of the tax collection and if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SANTOSH KUMAR GANGWAR)

(a)& (b) The amount of central revenue recovered as tax in proportion to the GDP is 10.62% percent during 2015-16.

(c) & (d) Details of cess and surcharge levied in respect of direct taxes are as under:

(i) Education Cess on income –tax at two percent and Secondary and Higher Education Cess on income tax at one per cent.

(ii) Surcharge of 10% in case of non-corporate taxpayers if taxable income exceeds Rs. 1 crore .

(iii) Surcharge of 7% in case of domestic companies if taxable income exceeds Rs. 1 crore but does not exceed Rs. 10 crore.

(iv) Surcharge of 12% in case of domestic companies if taxable income exceeds Rs. 10 crore.

(v) Surcharge of 2% in case of foreign companies if taxable income exceeds Rs. 1 crore but does not exceed Rs. 10 crore.

(vi) Surcharge of 5% in case of foreign companies if taxable income exceeds Rs. 10 crore.

(vii) Under the Income Declaration Scheme 2016, a surcharge under the name Krishi Kalyan Cess is levied @ 25 percent of the tax.

(viii) Under the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) a surcharge under the name Pradhan Mantri Garib Kalyan Cess @ 33 percent of tax is levied.

However, the cess and surcharge under indirect taxes are levied on taxable goods and services only.

(e) The amount collected as cess and surcharge is 12.22% of the tax collection during 2015-16.