Goods and Services Tax collection is showing a higher buoyancy than the pre-GST system, auguring well for future resource mobilisation in the economy, the Economic Survey 2022-23 presented in Parliament said on Tuesday.
Giving a 5-year analysis of tax collection pre- and post-GST, the survey said the taxes which were subsumed in the Goods and Services Tax had a buoyancy of one.
However, the buoyancy improved to 1.1 after the GST implementation on July 1, 2017.
“Improved tax collection efficiency was one of the main arguments in favour of GST. The evidence so far suggests that GST is indeed showing a higher buoyancy than the pre-GST system. This augurs well for future resource mobilisation in the economy,” said the Economic Survey.
Tax buoyancy refers to an increase in tax collections in proportion to a rise in national income. A higher buoyancy reflects the increased efficiency of the tax system.