India’s growing economic inequality has become a significant concern, as the wealth of the rich continues to soar while their tax contribution remains minimal. According to a report, higher taxation on the wealthy is essential to ensure fair resource distribution. Such taxes can provide vital funding for health, education, and other public services.
Impact of Unequal Taxation
The current tax system places a disproportionate burden on the poor and middle class, as India generates much of its revenue through indirect taxes. This exacerbates the wealth gap between the rich and the rest of the population. Experts suggest addressing this issue through wealth and inheritance taxes.
Learning from Global Practices
Countries like the United States and Europe use higher taxes on the rich to redistribute resources equitably. India should take lessons from these models, where luxury goods and large estates are taxed more rigorously. These measures can bring India closer to global standards.
