Oxfam India report has made shocking revelations on the growing disparity in economic conditions, and tax collection in India in its latest report stating that 21 Indians have more wealth than 700 million people in the south Asian country.
From the time the pandemic began till November last year billionaires in India have seen their wealth surge by 121%, or Rs 3,608 crore per day in real terms, ToI reported.
According to Oxfam India’s latest report, “Survival of the Richest: The India Story,” only 5% of Indians owned more than 62% of total wealth in the country in 2021, while the bottom 50% possessed only 3%.
The report, which highlights the total number of billionaires in India increasing from 102 in 2020 to 166 billionaires in 2022, will be presented on Monday at the World Economic Forum in Davos, Switzerland.
“The combined wealth of India’s 100 wealthiest has reached $660 billion (INR 54.12 lakh crore), an amount that could fund the entire Union Budget for more than 18 months,” according to the report.
The analysis also shows that taxing India’s billionaires once at 2% on their total wealth would fund the country’s nutritional needs for the next three years, amounting to Rs 40,423 crore.
The report emphasises the stark inequality, stating that from 2012 to 2021, 40% of the wealth created in India went to just 1% of the population, with only 3% going to the bottom 50%.
According to the report, the Union government continues to tax the poor and middle class more than the wealthy. In 2021-22, the bottom 50% of the population contributed approximately 64% of the total Rs 14.83 lakh crore in Goods and Services Tax (GST).
According to estimates, 33% of GST comes from the middle 40% and only 3% from the top 10%.
The bottom 50% of the population pays six times more in indirect taxes as a percentage of income than the top 10%, according to the report.
“Billionaire fortunes are growing by $2.7 billion per day, even as inflation outpaces wages for at least 1.7 billion workers, more than India’s population,” according to the report.
In light of this, Oxfam India has urged Union Finance Minister Nirmala Sitharaman to include “progressive tax measures” such as a wealth tax in the upcoming Union budget.
Amitabh Behar, CEO, Oxfam India as quoted by Times of India said, “The poor are paying disproportionately higher taxes, spending more on essential items and services when compared to the rich. The time has come to tax the rich and ensure they pay their fair share. We urge the finance minister to implement progressive tax measures such as wealth tax and inheritance tax which have been historically proven to be effective in tackling inequality.”