A new research paper ‘Towards Tax Justice & Wealth Redistribution in India’ was recently released by World Inequality Lab.
Key Highlights:
- The top 1% of the population holds 22.6% of income and 40.1% of wealth as of 2022-23, while the bottom 50% earn only 15% of income and hold only 6.4% of total wealth.
- The paper suggests imposing a 2% tax on net wealth exceeding Rs 10 crore and a 33% inheritance tax on estates exceeding Rs 10 crore to address rising inequality in India.
- This can help generate revenue between 2.5% – 5% of GDP, which can be spent on social sectors like health and education for facilitating redistribution.
- Current public spending on education is 2.9% of GDP, below the 6% target set by the National Education Policy 2020.
Ref: Source
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