Budget 2024 | Opinion: Yes, Only 1.6% Population Pay Income Tax, But 89% Pay GST. We Can't Disregard That

When we buy goods or services, we pay a price that is inclusive of GST, which is collected by companies/suppliers and then deposited with the government. (Representational image).

Source : PTI

A new report shows only 1.6% of the Indian population paid income tax in the financial year 2022-23. Maharashtra leads the pack among big states at 3.12%, while Bihar is at the bottom with 0.38%. However, such a statement is misleading and doesn’t present the true picture. Let’s see how! First of all, this calculation considers the entire population as working, and children under 18 years are not capable of earning and paying income tax. Almost 37.5% of the Indian population of