It’s true, there are countries where the super rich pay even higher taxes than they do in India.
The government used this to justify the higher taxes that those earning above Rs 2 crore will now have to pay.
But there was something it did not mention: most high-tax countries invest heavily to finance free education and healthcare along with various social security schemes. That doesn’t quite hold true for India.
On education front
According to a 2018 UK government report, of the total 87.4 lakh primary and secondary students enrolled in the country, 91.3% were studying in government schools.
World Bank data shows that in 2016, enrolment in private schools at the primary level was 15% in France and 9% in Canada. This was 33% in India.
At secondary level
At the secondary level, 25% of French students were enrolled in private schools while this was 8% in Canada.
In India, this was 51%. And the only reason this is so is because there aren’t enough good government schools in India. As a result, the taxpayer is not only paying taxes, but also paying large sums for her child’s education.
World Bank data shows that the Indian government’s spend on education as a proportion of GDP is much lower than many high-tax countries.