Skip to main content

To favour corporates, rich, Govt of India "allowed" 3-fold increase in forgone taxes in a decade: Oxfam report

By Our Representative
A new report published by the top international advocacy group Oxfam has estimated that the total revenue forgone in India as stated in the budget increased from Rs 2,06,700 crore in 2005-06 to Rs 5,89,285 crore in 2014-15, an increase by almost three times in just ten years, adding, most of this “forgone revenue” has gone in favour of the corporate sector.
Titled “India Inequality Report 2018: Widening Gaps”, the report has been authored by Himanshu, who is associate professor at the Centre for Economic Studies and Planning, Jawaharlal Nehru University, and is visiting fellow at Centre de Sciences Humaines, New Delhi, and has worked as fellow at Asia Research Centre of the London School of Economics.
Pointing out that, this mean, for every rupee of tax collected, the government was losing 56 paise of taxes, which could have been collected by the government, the report states, “Most of these exemptions benefitted the rich and the corporate sector. Within the corporate sector, it was the largest corporate groups which benefited the most.”
The report notes, though “as against the statutory tax rate of 33.66%, the effective tax rate in 2005-06 was 19.26% which increased to 23.22% by 2014-15”, what is of significance is, “Most of this increase was due to the increase in effective tax paid by the smaller companies that are above Rs 10 crore and below Rs 100 crore.”
It underlines, “The effective tax rate of companies with more than Rs 500 crore increased only marginally from 19.1% in 2005-06 to 20.7% in 2014-15”, adding, “By 2014-15, the effective tax rate of companies with lowest profits was the highest and companies in the highest tax bracket paid the least effective tax rate.”
“During the same year”, the report states, “The total subsidy on all schemes meant for the poor was Rs 2,53,913 crore and excluding the petroleum subsidy, it was only Rs 1,93,642 crore. That is, the benefits given to the rich and the corporates were almost three times the subsidy provided to the poor.”
The report estimates, “This amount was more than 15 times the allocation to Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the rural employment scheme. These exemptions, to the rich and the corporate sector, were accompanied by cut backs on social-sector and development spending.”
The report further says, that the trends in India’s development expenditure as a percentage of GDP suggest that the ratio fell continuously during 1985-1995, and while it did increase during 1996-2009, it has stagnated since.
A comparison of India’s spending on education and healthcare to some other countries, says the report, shows that, if calculated as expenditure on education as a percentage of GDP, “India fares poorly not only in comparison to poorer countries in the Sub-Saharan Africa and Bhutan but also vis-à-vis developing countries like Brazil.” 
“In terms of health expenditure, India is among the worst in the world”, the report says, adding,
“India’s public health expenditure stands around a paltry 1.4% of its GDP, lower than Sri Lanka, Bhutan, Sub-Saharan Africa, and Brazil.”
The result of government policy of helping the rich, the report suggests, is that India is currently among the countries with the highest levels of inequality, lower only to the Middle-Eastern countries. “The income share of the top 10% of the Indian population at 55% in 2016 is only second to the group of countries along with Brazil, second only to Middle-Eastern countries.”
“However”, the report underscores, “Unlike Middle-Eastern countries and Brazil which have had historically high levels of inequality but have seen a decline in the share of the top 10% in total income, India has seen a secular rise in the share of income accruing to the top 10% and top 1% of the population”.
It adds, “The top 1% of Indian population accounted for 22% of income in 2016, lower only to middle-eastern countries and Brazil. Here again, the trend in Brazil and the middle-eastern countries has been a secular decline as against a secular rise in the case of India in the last three decades.”

Comments

TRENDING

Buddhist shrines massively destroyed by Brahmanical rulers in "pre-Islamic" era: Historian DN Jha's survey

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".

Labelling a Jesuit a Marxist? It's like saying if you use a plane, you become American

Jesuits: Cedric Prakash, Stan Swamy By Fr Cedric Prakash SJ* A thirteen- fourteen-year-old has many dreams! That's an impressionable age; at the cusp of finishing school. It is also a time when one tastes a different kind of freedom: to go for camps with boys of your own age (not with ones family). Such camps and outings were always enjoyed to the hilt. The ones, however, which still remain etched in my memory are the mission camps to the Jesuit missions in Maharashtra and Gujarat.

Giant conglomerates 'favoured': Whither tribal rights for jal-jungle-jameen?

Prafull Samantara By Mohammad Irshad Ansari*  The struggle for “Jal, Jungle and Jameen” has been a long-drawn battle for the tribal communities of India. This tussle was once again in the limelight with the proposed diamond mining in the Buxwaha forest of Chhatarpur (Madhya Pradesh). The only difference in this movement was the massive social media support it gained, which actually seems to tilt the scale for the tribal people in a long time.

Tussle between Modi-led BJP govt, Young India 'key to political battle': NAPM

Counterview Desk  In its month-long campaign, civil rights network National Alliance for People’s Movements (NAPM) carried out what it called Young People's Political Persecution and Resistance in “solidarity with all comrades facing political persecution and remembering human rights defender Stan Swamy…”

Lost to commercialisation, vanity? Ashram awaits 'second assassination' of Gandhiji

Counterview Desk  Around 130 “concerned” citizens, in a statement, have protested against the Government of India and Gujarat government decision to turn Gandhi Ashram into a ‘world-class’ tourist destination spread over 54 acres at the cost of Rs 1,200 crore, which would include a Gandhi Ashram Memorial, an amphitheater, a VIP lounge, shops and a food court, stating it would compromise and trivialize the “sanctity and importance of the present-day Ashram, mainly Hriday Kunj, surrounding buildings, and the museum.”

Debt bondage, forced labour, sexual abuse in Gujarat's Bt cottonseed farms: Dutch study

By Rajiv Shah  A just-released study, sponsored by a Netherlands-based non-profit, Arisa , “Seeds of Oppression Wage sharecropping in Bt cottonseed production in Gujarat, India”, has said that a new form of bondage, or forced labour, exists in North India’s Bt cottonseed farms, in which bhagiyas, or wage sharecroppers, are employed against advances and are then often required to work for years together “without regular payment of wages.”

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Govt of India has 'no moral right' to declare national day for Muslim women, Naqvi told

Counterview Desk  In what has been described as a nationwide outpouring of condemnation, following the announcement by Mukhtar Abbas Naqvi, Minister of Minority Affairs, declaring August 1 as ‘Muslim Women’s Rights Day’ to mark the anniversary of the Triple Talaq law, over 650 citizens have said it is nothing but "cynical optics" of using Muslim women’s rights in the face of an "unprecedented" onslaught against the rights of the Muslims in recent years.

Covid: We failed to stop religious, political events, admits Modi-dharmacharya meet

Counterview Desk An email alert sent by one the 11 participants, Prof Salim Engineer, on behalf of the Dharmik Jan Morcha regarding their "religious leaders' online meet" with Prime Minister Narendra Modi, even as offering "support to meet challenges of Corona pandemic", blames religious congregations, though without naming the Maha Kumbh and other religious events, which apparently were instrumental in the spread of the second wave.

Madhya Pradesh Adivasis protest externment notice to Barwani tribal rights leader

By Harsing Jamre, Nasri Bai Ningwal, Prakash Bandod*  Over 2,500 Adivasis mobilized in response to Barwani district administration’s recent move to issue a show cause notice to Valsingh Saste, a prominent Adivasi activist of Jagrit Adivasi Dalit Sangathan (JADS), Madhya Pradesh. For two decades, Valsingh Saste as an activist of JADS has been continuously leading struggles for the constitutional and fundamental rights of Adivasis.