The richest 1% of India’s population owned more than 40.5% of the country’s total wealth in 2021, while the bottom 50% of the population only accounted for around 3% of it, non-profit group Oxfam India said in a report released on Monday.
total wealth of the 10 richest Indian stood at Rs 27.52 lakh crore in 2022
The combined wealth of India’s 100 richest persons reached Rs 54.12 lakh crore in 2022, Oxfam said in its report titled “Survival of the Richest: The India Supplement”. The total wealth of the 10 richest Indian stood at Rs 27.52 lakh crore in 2022, a 32.8% rise from 2021.
Stark contrast 22.89 crore persons live in poverty in India
total number of billionaires also increased in India from 102 in 2020 to 142 in 2021 and 166 in 2022. In a stark contrast 22.89 crore persons live in poverty in India – the highest in the world, the report said. It added that taxation could exacerbate inequalities if tax structures are not progressive in nature.
the tax rate increases as the taxable amount increases.
In a progressive taxation system, the tax rate increases as the taxable amount increases. Oxfam India pointed out that in India, while the income tax rates are based on income, indirect taxes are the same for all individuals irrespective of their earnings.
VAT [Value Added Tax] increases inequality and is regressive in nature
“Heavy reliance on consumption taxes like VAT [Value Added Tax] increases inequality and is regressive in nature because poor people pay a larger share of their incomes,” the non-profit said.
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Country’s population pays six times more on indirect taxation
The report said that the bottom 50% of the country’s population pays six times more on indirect taxation as a percentage of income as compared to the top 10%. Of the total taxes collected from food and non-food items, 64.3% was incurred by the bottom 50% of the population.
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