The middle class is staring at a tax burden heavier than ever, with personal income vanishing under rising levies. With the Union Budget around the corner, expectations for relief are mounting. Citizens are expecting that Union Finance Minister Nirmala Sitharaman, who hiked capital gains and other taxes during the stock market boom, will now offer relief amid market downturns.
A user, Venkatesh Alla, took to social media to voice his frustration, sharing a receipt that revealed a 48% tax on a car purchase — after already paying 31.2% in income tax. “What is this @FinMinIndia? Is there no limit to this daylight robbery? Your incompetence and inefficiency are dragging India backward. This is absolutely shameful!” he wrote.
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Laying out his tax burden, he detailed how a salaried Indian earning ₹1,000 pays ₹340 in income tax.
“Out of the remaining amount:
₹200 spent on petrol carries a tax of ₹110.
₹200 spent on education incurs ₹36 in GST.
₹100 spent on insurance includes ₹18 in GST.
₹100 spent on books and stationery has ₹18 in GST.
If he saves ₹100 and earns ₹50 in interest, he pays ₹10 as capital gains tax.
What remains? Just ₹300 — out of which expenses like toll fees, hospital bills (with GST), rent, groceries, and entertainment still need to be covered. Over 50% of our income is swallowed by the government. And what do we get in return? Poor air quality, pothole-ridden roads, rampant corruption, a sluggish judiciary, crumbling public infrastructure, and soaring inflation,” he added.
He also slammed policymakers, saying, “#TaxTerrorism is dangerous for India’s future. These uneducated and incompetent politicians don’t get it. Neither do people who sell their votes.”
Former IMF Executive Director Surjit Bhalla echoed these concerns in a recent interview, calling India’s taxation “unprecedented.” Speaking to NDTV, Bhalla cited IMF, OECD, and World Bank data, stating, “We are overtaxing our people to an extent not seen anywhere else.”
India’s tax-to-GDP ratio stands at 19%, significantly higher than East Asian economies like China and Vietnam, which maintain a rate of 14.5%. “China has been growing faster, and East Asia has thrived. So why aren’t we studying their taxation models? We are taxing like Korea and the US — countries ten times wealthier than us. The government needs to explain this,” Bhalla remarked.
Former Infosys CFO Mohandas Pai also pushed for revised tax slabs, advocating no tax for incomes up to ₹5 lakh, 10% for ₹5-10 lakh, 20% for ₹10-20 lakh, and 30% for incomes above ₹20 lakh.