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Congress leader Jairam Ramesh on Sunday attacked the government over taxation in the country, saying the “middle class is bearing the brunt of heavy taxation.” Citing data, he said “individuals are paying more taxes than companies.”
Ramesh’s remarks come ahead of the budget presentation on July 23.
“…the figures have just been released that the amount of gross personal income tax collection was,” Ramesh said in a post on X. ₹ 3.61 lakh crore during April 1 to July 1, 2024, while the gross corporate tax collection Rs 2.65 lakh crore.
“This confirms and validates what we have been saying for quite some time – that individuals are paying more taxes than companies,” the Congress leader said.
As we head towards the budget on July 23, data has just been released that the gross personal income tax collection amounted to Gross corporate tax collection during April 1 to July 1, 2024 was Rs 3.61 lakh crore Rs 2.65 lakh crore. This reaffirms and re-establishes…
— Jairam Ramesh (@Jairam_Ramesh) July 14, 2024
Jairam Ramesh shared figures from when Manmohan Singh was the Prime Minister. He claimed, “When Dr. Manmohan Singh left office, personal income tax was 21% of total tax collection, while corporate tax was 35%.”
He said, “Today, the share of corporate taxes in total tax collections has fallen sharply to a decade’s lowest level of just 26%. Meanwhile, the share of personal income tax in total tax collections has increased to 28%.”
Ramesh criticised the Centre’s 2019 move to reduce corporate tax rates and said it did not lead to a boost in private investment as was being projected, instead private investment has fallen from 35 per cent during the UPA rule to less than 29 per cent today.
He said corporate tax rates were cut on September 20, 2019, “in the hope that it would boost private investment. But that did not happen.”
“Instead, private investment has declined sharply, falling from a peak of 35% of GDP during Dr Manmohan Singh’s tenure to below 29% during 2014-24,” he said.
“Corporate tax cuts have put more than Rs 2 lakh crore in the pockets of billionaires, while the middle class is bearing a heavier tax burden,” Ramesh said.
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