Abstract

A nation's success is evaluated globally based on the growth and rate of its GDP. The amount of money spent, the amount of money earned, or the number of goods produced may all be used to compute GDP. The total market value of the commodities and services a nation's economy produces during a certain time period is one measure of a nation's gross domestic product, which is determined by economic activity. All finished products and services that households, investors, the government, and exports and imports possess are included. The GDP rate as of right now is 6.8% percent for the 2022-23 fiscal year. (Statistics times) Government money is mostly derived through taxes. Per capita income is a good indicator of a nation's living standards. The nation with the highest per capita income is renowned for its economic development. The introduction of technology in tax collecting is exemplified by the e-filing of returns, corrections, processing status, and refunds for e-filed returns. More effectively than before, it has increased GDP growth. The purpose of the current study is to evaluate how direct taxation affects GDP. To evaluate the relationship between the growth of GDP and Direct Taxes, time series data from 2000 to 2022 are investigated. Direct taxes were found to have a considerable influence on GDP growth.