Tax collection by the central government in the April-June quarter (Q1) of the current financial year came in at a record high. Gross tax collection stood at Rs 5.36 trillion, and it could well be at the level of 11 per cent of gross domestic product, if we assume that nominal GDP grew by 24 per cent in Q1.

       This is the highest ever. Tax revenue from all sources grew strongly in Q1, according to finance ministry’s provisional accounts. While growth in excise duties can be attributed to retention in high fuel taxes in times of growing demand, good corporate tax collections are due ...