Any governments first responsibility is towards the larger populace and an primary weapon has been an equitable and fair tax policy. However, the Modi government has all but given this up. Here is a snap shot.
1. DIrect taxes are income tax, corporate tax and wealth tax. By having tax slabs based on income, they are seen as equitable.
2. Indirect taxes are GST, Excise & Customs. They do not discriminate. Of course, the tax slabs try to levy more on non essential goods.
3. India's direct taxes in 2019 was 11.36 lac crores or 55% of total tax receipts.
4. However in 2019, India brought down its peak corporate tax rate from 30% to 22%. This largely benefitted corporates who were profitable.
5. The reduction in corporate tax rate brought down our corporate taxes by 2.06 lac crores in just 2 years, from 6.63 lac crore in 2019 to 4.57 lac crores in 2021. These are profitable companies now paying lesser taxes.
6. These tax cuts announced with much fanfare before Modi's trip to USA brought down the direct taxes share from 55% to 47% in 2 years.
7. However, this reduction in corporate taxes did not have any ripple effect on the economy. The capital formation was sluggish.
8. The loss in corporate taxes was made up by fuel taxes levied on trucks, taxis and autos alike. Fuel taxes increased from Rs. 0.74 Lac crores in 2014-15 to about Rs. 3.6 lac crores in 2020-21. This year, fuel taxes are likely to be Rs.4.5 lac crores, equaling corporates taxes.
9. The reduced corporate tax rate contributed to a buoyant stock market doubling BSE index from 25600 to 52000 today.
10. India always boasted of a equitable tax structure. Today, we make the auto and taxis pay so that we can pay lesser and also enjoy stock market gains.
India Today robs the poor to enrich the already rich. India is today, far from being an equitable and just country.

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More from @maheshperi

30 Jun
The case of Ruchi Soya gets curioser. Baba Ramdev acquired Ruchi Soya with just 1100 Crores of own funds after banks wrote-off Rs. 5300 crores and further loaned Rs.3250 crores against a pledge of the same shares to complete the acquisition.
Having cost the banks, the next likely victims can be small investors. Ruchi Soya has filed a DRHP for an FPO to dilute its holdings. The pricing of the FPO is to be discovered by the market.
Here is where the trouble begins. To curb price volatality and manipulation, Sebi mandates that companies emerging from insolvency proceedings (CIRP) must have at least a 5% upfront public shareholding.
Read 8 tweets
17 Jun
No talk of how Gujarati Businessmen benefit in India is complete without talking of Sandesaras of Sterling Biotech. With Adanis in the news for their unknown Mauritius investments, this becomes all the more important.
1. Sterling Biotech, A Gujarat based company promoted by Sandesaras owes Rs15,600 crore to Indian Banks.
2. The loans turn bad. In 2017, the entire family leaves India. They are now absconders from the Indian legal system.
3. Albania and Nigeria give them citizenship. Albania also makes them an honorary consul.
4. The bad loans reach insolvency proceedings where banks agree to a one time settlement (OTS) at 3100 Crores. That is 80% write off for banks.
Read 8 tweets
15 Jun
The Adani Group lost nearly ₹44,898 crore in market value on Monday as shares of group companies plunged. News of freezing of FPI accounts, a tweet by Sucheta Dalal and an explosive story by CNBC TV 18 all played a role.
1. The year also saw Gautam Adani becoming the second richest man in India as the market cap of his stocks went up from 2 lac crore to 9.5 lac crore. Surprisingly, the group firms have relatively low analyst coverage.
2. During the year, Adani Enterprises gained 741%, Adani Ports 100%, Adani Green 245%, Adani Transmission 650%, Adani Power 271% and Adani Total Gas 1,066%.
Read 9 tweets
13 Jun
The Prime Minister talked of Govt. supported vaccine research. There is also a rush and self congratulatory messages on IISc topping the QS charts. It is important to know how we supported our scientific community. Here is a report card:
1. The PM lied. In an affidavit in SC, the govt. said "It is submitted that no governmental aid, assistance or grant is made for research or development of either Covaxin or Covishield". This, despite Rs.900 Crores being allotted for vaccine research.
2. On IISc, a false narrative is being created with even the PM joining in. IISc topped on one parameter - Citation per Faculty. It just shows that we are squeezing more from our faculty. As a research institution, IISc is ranked 186.
Read 13 tweets
11 Jun
The Prime Minister made a national address where he announced FREE vaccination, and an repeated emphasis on FREE many times.

It is important to tell the emperor of what he has lost for us when he talks of how we gained because of his benevolence. Here is a lowdown:
1. The central government collected about 72,000 crores as oil tax in 2015. It would be about 360,000 crores in 2021. Currently, they collect 35,000 crores a month, just enough to give the entire population, both the jabs ON THE MONTHLY OIL TAX only.
2. The budget had already provided 35,000 crores for the vaccination. What was the FREE thing about when it is budgeted?

3. In the last 4 years, Banks were recapitalised to the tune of 2.86 lac crores thru budgetary allocation against write-offs owed by big industrialists.
Read 10 tweets
7 Jun
So, my thread on Ruchi Soya and Ramdev has caught a few by their knickers. For what is a perfectly legal acquisition on the surface, it is a complete sham.
With all the bullshit that the quack vomits on Blackmoney and nationalism, he has used the IBC process and our money to finance his racket and profiteered. Here are 10 questions:
1. This stinks. The banks term Ruchi Soya as a defaulter. They agree to settle for only 43.6% repayment. They fund the new acquirer. And they take the same defunct and defaulting Ruchi Soya shares as a collateral security? Can't get any stranger?
Read 10 tweets

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