India suffers US$ 41.17 billion loss due to corporate tax avoidance, or 2.34% of GDP, one of the highest in the world

By Rajiv Shah
India loses US dollars 41.17 billion dollars, or 2.34% of its Gross Domestic Product (GDP), as a result of corporate tax avoidance. While in quantitative terms this loss is the fourth largest in the world, next to the United States (188.8 billion dollars), China (66.8 billion dollars) and Japan (46.8 billion dollars), the loss as percentage of GDP tells a totally different story.
The size of the economies of US, China and Japan is much bigger than that of India, one reason why their quantitative loss due to corporate tax avoidance is more than that in India. However, in percentage of GDP lost, India’s 2.34 per cent is much higher than the US’ (1.13 per cent), Japan’s (0.93 per cent), and China’s (0.75 per cent).
Revealing this, a new research paper by the United Nations (UN) think-tank headquartered in Helsinki, the United Nations University World Institute for Development Economics Research (UNU-WIDER), “Global distribution of revenue loss from tax avoidance”, calculates, the total revenue loss across the world comes to 500 billion dollars in a year.
Jointly prepared by a British scholar, Alex Cobham, and a Czech scholar, Petr Janský, the paper finds that, as percentage loss as a result of corporate tax avoidance, is very high in developing countries. If Guyana with 6.97 per cent tops the list, Chad follows suit with 6.97 per cent, Malta 4.59 per cent, Comoros 4.42 per cent, Zambia 4.42 per cent, and so on.

Interestingly, India's neighbour, Pakistan, falls in the category having one of the highest percentage of GDP loss as a result of corporate tax avoidance -- 4.42 per cent. Other neighbouring countries’ losses, however, are lower than that of India – it is 1.65 per cent for Sri Lanka, 1.48 per cent for Bangladesh, and 0.75 per cent for Nepal.

Commenting on the report, the World Economic Forum (WEF) wonders, “What would you do with $500 billion? The first challenge might be actually getting your head around quite how much money that is. If you like to travel in style you could buy 1,150 Airbus A380s… If you just wanted to show off, you could cover a football field to a depth of 1.5 metres with cash.”
Pointing out that it’s “the amount of revenue the world is losing as a result of tax avoidance”, WEF, which is a Switzerland-based organization of world political and business leaders seeking to create global partnership on business, political, intellectual and other issues, says, “Corporate tax is a vital source of government revenue across the globe. It is especially vital in developing countries.”
Noting that UNU-WIDER findings “highlight the extent of global tax avoidance – as well as the countries facing the biggest shortfalls”, WEF says, “In terms of overall losses, you probably won’t be surprised to see some of the world’s biggest economies at the top. Given the size and strength of their economies, they’ve racked up significant losses.”
The report emphasises the significance of the losses as a percentage of GDP: “The intensity of losses is substantially greater in low- and lower middle-income countries: and in sub-Saharan Africa, Latin America and the Caribbean and in South Asia compared to other regions.”

Comments

Economist-editor's allegations on Narmada defamatory, baseless: Medha Patkar

Counterview Desk In a reply directly addressed to well-known economist, journalist and columnist Swaminathan S Anklesaria Aiyar’s two articles in the Times of India (republished here and here ), calling them defamatory and wondering whether they were borne out of “ignorance or a conspiracy through political alliance”, Narmada Bachao Andolan leader Medha Pakar has said that the Narmada Sardar Saravar Project and the people's movement by adivasis, farmers, labourers, fish workers, potters and all the generations’ old communities from the river valley have suddenly come to be focused on, since the Gujarat elections are in the doorstep. She believes that while the “defamatory accusations with baseless conceptions such as ‘urban naxals’ are to be laughed at as the electoral strategic moves, one gets shocked to read the articles by a known old columnist like Swaminathan Ankalesaria Aiyar, published in a reputed daily like the Times of India." According to her, Aiyar’s two articl

Hindutva groups threat to peace, freedom: US diaspora groups tell FBI, other govt depts

By Our Representative The Islamophobic and neo-Nazi ideology of Hindutva is a clear and present danger to peace and freedoms in the United States, a coalition of civil rights organizations told key officials of the U.S. Attorney General’s Office, the US Department of Justice (DOJ), and the Federal Bureau of Investigation (FBI) at a recent event in Edison, New Jersey. At the event titled United Against Hate, activists from American Muslims for Democracy (AMD), Hindus for Human Rights (HfHR) and Indian American Muslim Council (IAMC) made detailed presentations on this ideology of Hindu supremacism that is committing mass persecution of India’s Muslims and Christians and is rearing its ugly head in New Jersey as well as across the US. Attending the event were David S Leonardis, Special Investigator from the New Jersey Department of Law & Public Safety; Michael E Campion, Chief of the Civil Rights Division for the US Attorney General's Office; and Jonathan R Norbut of the U.S. Dep

Facing tough times, Rajasthan's Raika herders hold first-ever camel cheese festival

By Rosamma Thomas* During the pandemic, the annual Pushkar camel fair in Rajasthan did not occur for fear of contagion; in 2022, it was called off again as lumpy skin disease affected cattle. At Sadri in Pali district, however, festivity continues – a two-day Camel Cheese Festival was held on November 23 and 24, 2022. Visitors spent time with the camel herds and their Raika, drank camel-milk tea with the herders and then returned to lunch at the Kumbhalgarh Camel Dairy, from where the Kumbhalgarh Fort is visible, to taste camel cheese. The Raika herders have been facing a tough time – camels are no longer used as much for transport or agriculture in Rajasthan. The animals have limited utility, but their milk is prized. Camel Charisma, the dairy at Kumbhalgarh, sends camel milk across the country to people who use it in therapy – for autistic children, improved blood sugar levels, or even to treat cancer. It is believed that the health benefits of the camel milk is because the animals

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

As polls approach, electorate 'failing to realise': Gujarat model is in a shambles

By DN Rath* Gujarat assembly elections, scheduled to be held on 1 and 5 December 2022, is viewed by many as dress rehearsal for the 2024 Lok Sabha elections. When the suffering people have been pointing towards redressal of some local issues like absence of cleanliness, sewage problem, shortage of water supply, troubles created by stray cattle, insufficiency of streetlights, etc., it is evident that they are not fully aware that assembly elections are being fought on ideological standpoints and policy decisions. Nor is there the realisation that the state is in a shambles and the much-trumpeted ‘Gujarat model’ of development has proved to be a hoax. Like other states, the people of Gujarat are also back-broken by steep rise in prices to the tune of 400% in last 20 years. It is not that the government cannot control the spurt in prices if it so wants. Apart from the fact that price rise is an inevitability in a capitalist economy, artificial shortage triggered by massive hoarding, b

Shedding Hindu-Hindi-Hindustan? New Modi-Shah love for Tamil Nadu 'ignores' Periyar

By Sandeep Pandey* The Rashtriya Swayamsewak Sangh (RSS) or the Bhartiya Janata Party (BJP) have long argued for ‘Hindu-Hindi-Hindustan’, which into recent years has translated into a crisper English expression: ‘One Nation-One Religion-One Language’. Given this backdrop, it is curious that the BJP government has organised the Kashi Tamil Sangamam in Varanasi, the Prime Minister’s constituency. Why did the BJP and RSS feel the need for such an event? All Narendra Modi events are highly publicised and have multiple political objectives. It is never an innocuous religious/cultural event as it may appear from the face of it. Afterall, RSS calls itself a cultural organisation, but has never ceased to surprise us with its political designs. Tamil Nadu has a long history of opposing imposition of Hindi by Union governments. Periyar EV Ramasamy had opposed the idea of compulsory teaching in Hindi as far back as in 1937. The 1960s witnessed violent protests against Hindi in which a number

Amit Shah accused of inciting communal passion: Demand to postpone Gujarat polls

Counterview Desk In an email representation to the Election Commission of India (ECI), Dr EAS Sarma, former secretary to the Government of India, has objected to the statement reported to have been made by Union home minister Amit Shah, who allegedly justified the 2002 Gujarat riots stating that certain sections of people “taught a lesson” to the rioters. Noting that the statement, if correct, “in effect implies those other than the law enforcement authorities had taken law into their hands”, Sarma says, “Shah's statement needs to be viewed by the ECI in conjunction with the reported fact that it was the Union Home Ministry that cleared the release of the eleven rape convicts in the Bilkis Bano case, directly related to the infamous Godhra incidents in 2002, which triggered the shameful sequence of events that shook the nation's conscience.” According to Sarma, if the statement is true, “I am constrained to draw the inevitable inference that it would have already impacted th

BJP poll gimmick? Bilkis Bano rape case 'pardon' vs Rajiv assassins' release

By Sandeep Pandey* Supreme Court has released six convicts in the Rajiv Gandhi assassination case. This was bound to happen as earlier AG Perarivalan was released in the same case, setting a precedent. Even though four of them are Sri Lankans but a popular Tamil sentiment favoured the release of these convicts which is why Tamil political parties supported this and resolutions were passed by different governments in Tamil Nadu to his effect. Rajiv Gandhi paid the price of sending Indian Peace Keeping Force to Sri Lanka where it got entangled with Liberation Tigers of Tamil Eelam and eventually the whole operation ended up is a fiasco. However, most importantly Sonia and Priyanka Gandhi and probably Rahul too do not have any objections to the release of these convicts. In fact, Sonia Gandhi played an important role in getting the death sentence of the only lady among the convicts Nalini commuted to life term through the Tamil Nadu Governor. Priyanka visited Nalini in Vellore Jail and

Diminishing returns: Hydro projects contribute less than 10% of India's power generation

Counterview Desk Pointing out that India’s hydro generation remains around 10% for the last six years, the advocacy group South Asia Network on Dams, Rivers and People (SANDRP) has said that power generation from hydropower projects continues to show diminishing returns, as has been the story close to three decades now. Yet, says SANDRP in a note, the Government of India continues to push large hydro by announcing a slew of additional subsidies for hydropower projects, more for political economy reason. In fact, attempts are being made to flog unviable hydropower projects with various kind of manipulations, illegalities and violations, it adds. Text : In last six years, from 2016-17 to 2021-22, India’s large hydropower projects (projects above 25 MW installed capacity) have contributed just around 10% of the total power generation, going as low as 9.68% in 2017-18. In fact, in three of these six years, large hydro contributed less than 10% and recovering only marginally in the rest,

Odisha survey reveals 56% children have not attended any classes post-pandemic

By Our Representative The Learning Recovery Programme (LRP) has been taken up by the state government's Odisha School Education Programme Authority (OSEPA) to provide a learning opportunity to students to make up for losses in studies due to the closure of schools on account of the Covid-19 pandemic. However, lack of awareness among children and their parents and absence of robust monitoring have blocked its effective implementation, reveals a pilot fact-finding study conducted by the NGO Atmashakti Trust. The pilot study was conducted with school-going children in two blocks of the Nuapada district, where over 500 grassroots workers divided into 33 groups visited 68 schools in one day and interviewed 115 children to understand the implementation of LRP. The study was a part of its 26-day nationwide campaign, "Education Cannot Wait. Act Now!" which kickstarted on November 15, comprising Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, Rajasthan and Uttar Pradesh, where

Search This Blog