New Delhi. With personal income tax collections being higher than corporate tax collections, the Congress on Sunday alleged that the corporate tax cut has led to Rs 2 lakh crore going into the pockets of billionaires, while the middle class continues to bear a heavy tax burden.
The opposition party has launched this attack on the government a day after Central Board of Direct Taxes (CBDT) data showed net direct tax collection of Rs 5,74,357 crore (till July 11, 2024), which includes corporate income tax of Rs 2,10,274 crore and personal income tax of Rs 3,46,036 crore, excluding refunds.
Congress general secretary and communication in-charge Jairam Ramesh said, “The budget date is slowly getting closer, it is to be presented on July 23. The data released shows that the gross personal income tax collection during April 1 to July 1, 2024 was Rs 3.61 lakh crore, while the gross corporate tax collection was Rs 2.65 lakh crore.” He said, “This reaffirms what we have been saying constantly – people are paying more tax than companies.”
Ramesh said, “When Dr. Manmohan Singh left the post (of Prime Minister), personal income tax was 21 percent of the total tax collection, while corporate tax was 35 percent. Today, the share of corporate tax in total tax collection has fallen sharply to a decade’s lowest level of just 26 percent.” He said that meanwhile the share of personal income tax in total tax collection has increased to 28 percent.
The Congress leader said corporate tax was cut on September 20, 2019 with the hope that it would boost private investment. “But that has not happened. Instead, private investment has fallen from a high of 35 per cent of GDP during Dr Manmohan Singh’s tenure to less than 29 per cent during 2014-24,” he said. “Corporate tax cuts have put Rs 2 lakh crore in the pockets of billionaires, while the middle class is bearing a heavy tax burden,” he said. Union Finance Minister Nirmala Sitharaman will present the 2024-25 budget in the Lok Sabha on July 23.