Jairam Ramesh Slams Heavy Taxation on Middle Class: On Sunday, Congress leader Jairam Ramesh launched a fierce critique against the government, highlighting the burden of heavy taxation on the middle class. He pointed out that the tax contributions from individuals surpass those from corporations.
Ramesh’s remarks came in the lead-up to the budget presentation set for July 23. His comments are poised to stir a robust discussion on the nation’s fiscal policies.
In a post on X, Ramesh revealed some compelling statistics:
As we head towards the Budget on July 23rd, data has just been released that gross personal income tax collections amounted to ₹3.61 lakh crores during April 1-July 1 2024 while gross corporate tax collections were ₹2.65 lakh crores. This reconfirms and re-establishes the…
— Jairam Ramesh (@Jairam_Ramesh) July 14, 2024
Ramesh emphasized, “This reconfirms and re-establishes the point we have been making for quite some time – that individuals are paying more tax than companies.”
Providing historical context, Ramesh shared data from the tenure of former Prime Minister Dr. Manmohan Singh. He noted, “When Dr. Manmohan Singh left office, personal income tax was 21% of total tax collections, while corporate tax was 35%.”
He further illustrated the shift in the tax landscape, stating, “Today, the share of corporate taxes out of total tax collection has dropped sharply to its lowest level in a decade, at just 26%. Meanwhile, the share of personal income tax in total tax collection has shot up to 28%.”
Ramesh did not hold back in criticizing the government’s 2019 decision to slash corporate tax rates. He declared, “The move was intended to spark a surge in private investment, but instead, private investment has fallen from 35 percent under UPA rule to under 29 percent today.”
Sharing his insights further, Ramesh remarked, “Corporate tax rates were slashed on September 20, 2019, in the hope that it would trigger a private investment boom. But that has NOT happened.”
He stressed that private investment has drastically fallen, “from a peak of 35% of GDP under Dr. Manmohan Singh, to below 29% during 2014-24.”
Ramesh concluded with a powerful statement: “The corporate tax cut has put over ₹2 lakh crore in the pockets of billionaires, while the middle class continues to bear the weight of heavy taxation.”
