Share of direct and indirect tax in total central tax in India FY 2018-2023
As per Indian Union Budget estimates for financial year 2023, direct taxes accounted for 51.5 percent and indirect taxes accounted for 48.5 percent of total central tax collection in India. The source mentions that due to a cut in the corporate tax rate in 2019 and an increase in excise duty in financial year 2021, the share of direct taxes witnessed a fall following 2019. In a progressive tax system, the share of direct taxes is higher than indirect taxes.