Tax Revenue : The money paid by the citizens without any expectation in return is called Tax. The Central government imposes various types of taxes to collect revenue. Taxes are the major sources of revenue for the government.
The government imposes higher rate of taxes on high-income group and lower rate of taxes on low-income group. The poor are exempted from income tax. Similarly, a higher rate of taxes is imposed on luxury goods and services used by the rich, and a lower rate of taxes on goods and services used by the common people. This principle used by the government in the imposition of taxes is called Principle of Progressive Taxation.
The taxes imposed by the Central government are of two types:
a. Direct Taxes
b. Indirect Taxes
Gross tax revenue during April-January 2016-17 recorded a growth of 17.7 per cent over AprilJanuary 2015-16.
Tax revenue (net to Centre) increased by 20.2 per cent during April-January 2016-17.