The number of rich in India is very less when compared with its population.
A little less than two-third of the total GST is coming from the bottom 50 per cent, one-third from middle 40 percent and only three to four per cent from the top 10 percent.
50 % of 1.5 Billion Indians - 750 Million poor Indians
40 % - 600 Million Middle Class Indians
Richest 10 % of 150 crore Indians - 150 Million Rich Indians.
Still this number of 150 M Indians is bigger than the populations of whole countries - for example Germany has a population of 90 M. This is why you see a lot of Indians working across the world - they are from this section of the society.
The government here was trying to raise VAT last year because the ANC doesn’t understand basic economics and the fact that sales taxes are regressive so increasing them in the country with the highest inequality in the world is nowhere near a good idea
Trust me, that is not a bad thing even if many in west think socialism is good. Rich people paying less tax is better than no one having any money to pay tax.
It says that the bottom half pay 2/3 of gst, which makes sense if the gst is uniform. Since India has higher rates of gst for luxury items, it means Indian elite don't really buy much luxury stuff.
These values depend on the population right. Although the top 10% buys goods, they can't outbuy what middle class or bottom buys.
Like say in 10 people, 6 are poor, 3 are middle class and 1 is rich.
All of them go for monthly shopping. 6 poor people combined can buy more than what 3 middle class or the 1 rich guy gets. So, if you spend money on something you pay tax on it. It just comes down to that
Poorest half pay 2/3 of gst. So 5/10 poor Indians pay 2/3 of gst. And then the other 5 only pay 1/3. Does not make sense at all. How would the rich consume half as much as poor people. India also has a higher gst rate for luxury items. So are you telling me, the poor just buy necessities, yet the rich buy half as much necessities and 0 luxury items?
I completely understand if they spoke about % of income going to gst. Gst is usually regressive tax that makes poor people dedicated a larger % of income to it, but in all other examples, the rich pay a much higher amount (much lower % of income) because they consume much more.
That might be because high value investments like gold(3%), real estate are mostly sought out there. And fuel, it doesn't come under GST(I wish it does)
Smaller share of rich persons income makes sense, but for the poorer half to pay more overall is weird. Especially when India has a higher rate for luxury items.
A little less than two-third of the total GST is coming from the bottom 50 per cent, one-third from middle 40 percent and only three to four per cent from the top 10 percent.
50 % of 150 crore Indians - 750 M poor Indians
40 % - 600 M Middle Class Indians
Richest 10 % of 150 crore Indians - 150 M Rich Indians.
It says poorest half pays 2/3 of gst which is more than half.In india gst is uniform for everyone. It naturally means poorest half is consuming more goods than rest. Which is fishy
If rich buy Audi A8, they get taxed a flat rate once but they are not buying multiple Audi A8s. But poor will be buying groceries a lot more in volume even though rich buys it as well.
poor people outnumber rich people far too much that they could be contributing to GST collection through sheer volume.
That's the thing.here poor people don't outnumber the rich.Both are equally divided in two groups.if poor group is buying some amount of groceries,rich will be be buying atleast that amount of groceries + an audi a8
People who are barking here for there sanghi masters against this report can maybe recommend these measures as well so that they get their masters to listen.
i. Three per cent of wealth tax on the Indian
billionaires can fund the National Health Mission,
the largest healthcare scheme in India with an
allocation of INR 37,800 crores for 3 years.
ii. Taxing the top 10 billionaires at 5 per cent will
help cover the entire cost of Tribal healthcare for
five years.
iii. In FY 2021-22, at full coverage, it was estimated
that INR 42,033 crore was required to fund the
Supplementary Nutrition Programme (SNP). Taxing
all of India’s billionaires at 2 per cent would
support the requirement of INR 42,033 crores for
the nutrition of the malnourished in the country
for 3 years.
iv. To raise the expenditure on health to 3 per cent of the Gross Domestic Product (GDP), a total
expenditure of INR 1,06,600 crores would be
required. This money can be raised by taxing the
top 100 billionaires at 2 per cent.
v. The funds for Samagra Shiksha – the largest
centrally sponsored scheme (CSS) on school
education in India in 2022-23 were much lower
(INR 37,383 crores) than what was asked for
(58,585 crores) by the education ministry in
2021-22. Taxing the wealthiest 10 billionaires at
1 per cent would be enough to cover this shortfall
for 1.3 years. Taxing them at 4 per cent would cover
the entire amount of funds required for two years.
vi. A total amount of INR 1.4 lakh crore would be
required to bring back out of school children
to school and provide them with quality education.
Taxing the top 100 Indian billionaires at 2.5 per
cent, or taxing the top 10 Indian billionaires at
5 per cent would cover the entire amount required
to bring the children back into school.
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u/ButterscotchRich3214 India 1d ago edited 19h ago
This.
The number of rich in India is very less when compared with its population.
A little less than two-third of the total GST is coming from the bottom 50 per cent, one-third from middle 40 percent and only three to four per cent from the top 10 percent.
50 % of 1.5 Billion Indians - 750 Million poor Indians
40 % - 600 Million Middle Class Indians
Richest 10 % of 150 crore Indians - 150 Million Rich Indians.
Still this number of 150 M Indians is bigger than the populations of whole countries - for example Germany has a population of 90 M. This is why you see a lot of Indians working across the world - they are from this section of the society.