Individuals Bear Tax Burden as Corporate Contributions Wane

The Congress has criticized the Modi government as individual tax contributions now surpass those of corporations. Despite cuts in corporate tax rates to boost private investment, such investments have not materialized. Individual taxes now account for over 30% of total government tax receipts.

The Congress party has sharply criticized the Narendra Modi administration, alleging a shift in the tax burden from corporations to individuals. This criticism comes in the wake of reports indicating that taxes from individuals now contribute over 30% to the government's total tax revenue, surpassing corporate contributions.

Jairam Ramesh, Congress general secretary-in-charge of communications, highlighted these concerns, pointing out that cuts in corporate tax rates, initially intended to stimulate private investment, have yet to yield significant results. Despite hopes for an investment boom following the September 2019 tax rate reduction, such growth remains elusive.

Ramesh emphasized that while direct taxes should make up a larger portion of tax collections due to their progressive nature compared to indirect taxes like GST, it's problematic that individuals are bearing a greater tax burden than corporations.

(With inputs from agencies.)