Re: Wish list for Modi 3.0 administration
Posted: 17 Aug 2025 13:46
India Government Budget is 0.57 Lakh Cr. Population is 145Cr. Therefore percapita spend is 0.35L/year. dependency ratio is 47%. Therefore average tax of a working age person should be 0.51L per year.
Less than 5% of India's population crosses 0.51L/Yr tax hurdle (my estimate). Most of the tax is paid by a miniscule 2% of the population (which pays 4.6L per year) and rest of the nation is a net tax beneficiary from the Government services, Freebies, Infrastructure etc. The taxpayers is not represented in governance and is suffering from all type of legal and illegal taxes (by way of poor infrastruture, pollution, poor law enforcement etc) in India.
Property tax (generally 1% of property value) which runs most local government like in china / usa (paying for schools, local roads, sewerage, prisons, police stations, public parks etc) in India is an astonishingly low 0.02% of property value has never been collected properly since 1947. The low property tax value and high transaction tax (Stamp duty 7% without input credit) has kept land non liquid and extremely expensive. With land values at least 4X greater than comparable land in other nations. There is no cost to hoarding land and keeping it idle.
India rental yields are low since the property costs are artificially high.
Less than 5% of India's population crosses 0.51L/Yr tax hurdle (my estimate). Most of the tax is paid by a miniscule 2% of the population (which pays 4.6L per year) and rest of the nation is a net tax beneficiary from the Government services, Freebies, Infrastructure etc. The taxpayers is not represented in governance and is suffering from all type of legal and illegal taxes (by way of poor infrastruture, pollution, poor law enforcement etc) in India.
Property tax (generally 1% of property value) which runs most local government like in china / usa (paying for schools, local roads, sewerage, prisons, police stations, public parks etc) in India is an astonishingly low 0.02% of property value has never been collected properly since 1947. The low property tax value and high transaction tax (Stamp duty 7% without input credit) has kept land non liquid and extremely expensive. With land values at least 4X greater than comparable land in other nations. There is no cost to hoarding land and keeping it idle.
India rental yields are low since the property costs are artificially high.