India’s direct tax-to-GDP ratio hit a 15-year high of 6.11% in 2022-23, hovering near its peak of 6.3% reached in 2007-08, according to data released by the Central Board of Direct Taxes (CBDT). The data, released late on January 23, showed that the contribution of direct taxes – which majorly comprises corporate tax and personal income tax – to total tax collections has reached the pre-pandemic levels. In 2022-23, direct taxes made up 54.62% of the government’s total tax revenue, up from 52.27% in 2021-22 and 46.84% in 2020-21 – the lowest in 15 years.