Do too few Indians pay tax?

Angst over the small number of taxpayers does not account for the reality of ‘everyone pays GST’. Moreover, the facts clearly show that the income tax base is wide enough and growing.

Income tax is an important element of the government’s budget, representing 19 paise of every rupee it earns. Its importance gains another dimension in India because only a small proportion of the population actually pays any income tax. 

A dimension that is clearly fraught with emotion, as was amply demonstrated a couple of days ago.

On X (earlier Twitter), there was quite the storm over the low proportion of Indians paying income tax. A Times of India post-budget article had lent fodder to the rants. The piece claimed that “Indians who pay income tax are a rare breed” and, in …


Ujval Nanavati

Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.

Editor, Business