India's 66% GST Is Paid By The 50% Of The Poorest; Richest Indians Pay Only 3% Of GST Collection


Mohul Ghosh

Mohul Ghosh

Jan 21, 2023


The gap between India’s richest and poorest is widening more, together with the wealth. 

India's 66% GST Is Paid By The 50% Of The Poorest; Richest Indians Pay Only 3% Of GST Collection

According to Oxfam India’s latest report called the ‘Survival of the Richest: The India Story’, from 2012 to 2021, the wealth owned by the top 1% richest people in India constitute over 40% of the total wealth created in India, while only 35 of the country’s wealth belongs to the bottom 50% in India.

The report was released on the first day of the World Economic Forum 2023 in Davos, starting Monday, January 16. It reveals that the total number of billionaires in the country rose from 102 to 166 in two years in 2022.

The cumulative wealth of the country’s richest 100 individuals touched the $660 billion mark, which aggregates to nearly Rs 54.12 lakh crore. To get context, the amount of this size would fund the entire Union Budget for over 18 months.

“Roughly 19% of the Indian billionaires come from the private healthcare and pharmaceutical industry, which was greatly boosted following the onset of the COVID-19 pandemic. In 2020 itself, there were seven new  billionaires in the healthcare and pharma industry, with their combined wealth reaching Rs 4.3 lakh crore by early 2021,” the report added.

The report also underlines that the Union Government continues to tax the poor and middle class more than the rich and ultra-rich’s.

The bottom 50% wealthy Indians contributed 64% of the total Rs 14.83 lakh crore in GST in the year 2021-22, while only 3% of the GST contribution in the year came from the top 10%.

The report added that the bottom 50% of the wealth pool in India pays six times more on indirect taxes as a percentage of income compared to the top 10%.

“The Finance Minister must especially raise taxes on capital gains, which are subject to lower tax rates than other forms of income. And also implement inheritance, property, and land taxes, as well as net wealth taxes,” the Oxfam India report reads.


Mohul Ghosh
Mohul Ghosh
  • 1799 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online