Insta
Thanks To DeMo, India Adds 41 Lakh More Taxpayers Than It Would Otherwise Have
Income Tax return forms
Post demonetisation, India has added over 41 lakh new taxpayers, registering an 80 per cent increase over the typical yearly rise, Livemint has reported. On an average, India adds 50 lakh new taxpayers every year. With the addition of 41 lakh new tax compliant citizens, the number of new taxpayers has risen to 91 lakh.
“About 9.1 million new taxpayers have been found, significantly expanding the taxpayer base,” the daily quoted a senior government functionary as saying.
The low tax collection in India has been a significant problem for the government as it affects government’s finances. Tax revenue in India formed only 16.7 per cent of the country’s gross domestic product in 2016. Compared to this, tax revenue in the United States and Japan formed 25.4 per cent and 30.3 per cent of the gross domestic product (GDP) respectively.
In Finance Minister Arun Jaitley’s words, India is largely a ‘tax non-compliant society’. The predominance of cash in the economy makes it possible for the people to evade their taxes. Therefore, demonetisation and push for digital modes of transaction could have brought more people under the tax umbrella.
India had only 5.59 crore taxpayers at tee end of 2015-16. In 2016-17, according to another official quoted by Livemint, India ended with around 6.5 crore taxpayers. Prime Minister Narendra Modi plans to push India’s tax base to 10 crore.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
