Mohandas Pai advocates for middle-class tax relief ahead of Budget
Mohandas Pai, Chairman of Aarin Capital, has expressed concern over the growing discontent among India's middle class due to high taxation ahead of the Budget session. "The middle class...over the country is very unhappy that they are paying the majority of the taxes," he said in an interview with Mint. He added that this demographic needs to see a reduction in taxes since there have been more economic pressures such as inflation, rising living costs, and escalating student fees.
Pai urges focus on infrastructure and job sector growth
Pai's concerns extend beyond the middle class. He emphasized the need for infrastructure development and increasing purchasing power among the bottom 50% of India's population. Additionally, Pai underscored job sector growth as a crucial area requiring attention, noting that "80% of jobs pay less than ₹20,000, and that is a problem." He further advocated for comprehensive strategies to alleviate these economic challenges.
Survey supports Pai's concerns on middle-class financial strain
A recent LocalCircles survey, involving 21,000 respondents from 327 districts across India, echoes Pai's concerns. The survey revealed that 48% of households anticipate a reduction in income and savings by the end of the financial year 2024-2025. This expectation is attributed to rising living costs outpacing income growth, making daily life increasingly challenging to sustain on a fixed income or savings.
Pai calls for end to 'tax terrorism' in India
In his concluding remarks, Pai called for an end to what he termed as "tax terrorism." He urged the Enforcement Directorate and Central Bureau of Investigation to expedite cases and file charge sheets promptly to ensure accountability. "Tax terrorism is a big threat to India," he warned, emphasizing the need for swift action against this issue that continues to plague the nation's economic landscape.
