Explanation:

Demonetisation and Goods and Services Tax (GST) led to an increase in new taxpayers coming into the income tax (I-T) net, the Economic Survey said on Monday. It said that 18 lakh additional new taxpayers were added in the 13 month period post demonetisation, which represented an uptick over the average yearly growth trend of the last six years in the corresponding period. The survey said that the growth in additional new filers was about 10% during the said 13-month period in the last six years prior to November 10, 2016. However, this rose to 31% in November 2016-November 2017 period.

On the indirect tax front, the survey said that the taxpayer base grew by more than 50% since GST was rolled out in July last year. The combined tax base in the pre-GST regime was 64 lakh, which consisted of registrants under excise, service and VAT systems. This has now jumped by 34 lakh to 98 lakh under the new indirect tax system. The latest data from the government has now pegged the total registrants at a little over 1 crore.

The Economic Survey 2017-18 highlighted that there has been a decline in the reliance on direct taxes in India which contribute only around 35 per cent of total taxes as against a contribution of about 70 per cent in Europe.

"Unlike in other countries, reliance on direct taxes in India seems to be declining, a trend that will be reinforced if the Goods and Services Tax (GST) proves to be a buoyant source of revenue,"

The Economic Survey 2018 stated that for the "first time in India's history", data on the international exports of states has been dwelt upon in the Survey. Such data indicates a strong correlation between export performance and states' standard of living.

"States that export internationally and trade with other states were found to be richer. Such correlation is stronger between prosperity and international trade," it added. It has pointed out that five states - Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana account for 70 per cent of the country's exports.