66 paise of every Rupee in government coffers comes from taxes

MUMBAI: Of every rupee in the government coffers, the biggest pie–of 66 paise– comes from direct and indirect taxes, according to the budget 2025-26 documents. This means that 66% of the government revenue is sourced from taxes now.

Of the total tax revenue, direct taxes, including corporate and individual income tax, contribute around 39 paise, of which income tax alone is 22 paise, and corporate tax accounts for 17 paise.

Among indirect taxes, such as the goods and services tax (GST) contributes the maximum 18 paise in every rupee of the government revenue.

Besides, the government earns 5 paise from every rupee from excise duty and 4 paise from customs levy, adding the indirect tax contribution to 27 per cent or 27 paise of every rupee, totalling the tax kitty to 66%, according to the budget presented in Parliament by finance minister Nirmala Sitharaman on Saturday.