It was once famously said that the executive (government) is nothing but a committee to manage the affairs of the ruling class in any society. The Narendra Modi-led Bharatiya Janata Party government is a fine example of this truth. The open and brazen way in which it has worked to the advantage of India’s powerful corporate sector has few parallels in the world.
Take the example of taxation, which is the sovereign right only of governments. In the name of spurring ‘growth’ and ‘employment’ the Modi government has decisively reduced taxes levied on big business while increasing the burden on common people through direct and indirect taxation. It has also reduced customs duties (tax on imports) to encourage entry of foreign products into the country, thus damaging domestic industry, especially the medium and small-scale sectors.
Corporate Tax Cuts
As the chart below shows, income tax collections increased from Rs.2.6 lakh crore in 2014-2015 when Modi came to power, to Rs.5.6 lakh crore – a rise of 117%. In the same period,
— source newsclick.in | Subodh Varma | 24 Oct 2021