FM Nirmala Sitharaman dismissed the Oxfam report that says rich contribute less to the GST.

Let's first see what Oxfam says in its report -

1. Report claims -

- 64% of the total GST comes from bottom 50% people,

- 33% from middle 40% people and

- only 3% from the top 10% people.

2. The report shows how the poorest 50% of the population is paying most of the indirect taxes or consumption-related taxes.

3. Contrary to the popular narrative that only a handful of Indians pay taxes, the Oxfam report has an entirely different take on the issue.

Finance Minister:

FM Nirmala Sitharaman dismissed the Oxfam report that rich contribute less to the GST.

FM said, 90% of GST collections are paid by the top 22% businesses having a turnover above Rs.50 crore and dismissed the Oxfam report’s conclusions that the richest 10% contribute a fraction of the GST kitty, while the poorest 50% contribute 2/3rd of the revenues.

The Oxfam report “seems to be based on various improbable assumptions and not irrefutable or verifiable facts”, the minister said in Rajya Sabha, noting that the GST is a consumption tax collected from suppliers of goods and services and not from the ultimate consumers of goods and services.

“Therefore, it is not possible to exactly calculate how much GST is actually paid by whom. From the data of return filing, it is evident that 90% of GST is paid by top 22% businesses of India having turnover above 50 crores,” Ms. Sitharaman added.

To keep the incidence of taxation low on items of mass consumption, goods like unpackaged food grains, fruits and vegetables and services like education and .......

☛ Login to read more...

☛ Source of information