Agarwal said that the nominal GDP rate will be dictating growth in GST revenue although presently there is a tax buoyancy above 1, which indicates compliance level is going up. “So in times to come, this buoyancy in GST revenue collection will continue, but slowly, when the compliance level will be very high, then the buoyancy will not be that high. Let’s hope our GDP growth will be very robust and accordingly GST revenue collections will also happen,” said Agarwal. Tax buoyancy refers to the responsiveness of tax revenue to changes in economic activity and is a barometer of how well the tax system is able to mobilise additional revenue. Maybe, after sometime, people may switch over to electric vehicles and there may be much lesser number of petrol or driven vehicles.

Source: Mint February 04, 2024 05:51 UTC