AAP MP Criticizes Central Government Over Tax Burden on Citizens

AAP MP Raghav Chadha launched a strong critique against the central government on Thursday, focusing on the significant tax burden placed upon ordinary citizens. He argued that citizens are taxed at every stage of life, from birth to death, without a corresponding provision of quality public services.

Chadha emphasized the pervasiveness of taxation, stating that it begins even before a child's birth, noting that distributing sweets to celebrate a birth incurs tax. “Tax to live, tax to die - and tax on every breath!” Chadha declared in the Rajya Sabha.

“Even playing in childhood is expensive - 12 per cent GST on toys! School bags, shoes, books, pencils - everything is taxed,” the AAP MP also stated, as reported by PTI.

He further detailed the tax burden encountered by young adults, pointing out that purchasing a bike at 18 involves multiple taxes, including road tax, GST, insurance tax, and toll tax. “Even the dream of owning a house is taxed - buy land and pay stamp duty; buy materials and pay GST; construction too invites GST, and capital gains tax is imposed on selling of the house,” he said.

Chadha also addressed the challenges faced by senior citizens, noting that pensions are taxed, and additional costs are incurred on medicines, medical treatment, and insurance policies. He accused the government of imposing taxes comparable to those in developed nations while providing services at the level of underdeveloped regions.

According to Chadha, excessive taxation has stifled the economy, leading to declining sales in the FMCG sector and the automobile industry. “The government collects massive amounts of tax from the public, but in the name of public services, there are only promises,” Chadha asserted.

He elaborated on the increasing tax burden during teenage years: “This is the most carefree and fun time of life. At this age, a child buys their first smartphone-GST applies. If the phone is expensive or imported, there's an import duty. Phone recharges come with GST. Broadband Internet has GST. Subscriptions to Netflix, Spotify, or video games also attract GST. Going to a movie with friends means GST and entertainment tax on the ticket, and even GST on different kinds of popcorn and cold drinks.”

He added, “At 18, when they buy their first motorbike or scooter, they face GST, road tax, registration fees, and GST on vehicle accessories and insurance.”

Chadha also explained the tax burden that begins with the start of a career: “This is the trap of direct taxes. When you get your first job, TDS is deducted based on your income slab. Income tax is collected. When you get your first salary and take your parents or friends out for a meal or a movie, even that bill comes with GST. As your salary increases, so does your income tax slab. In the work-from-home culture, internet bills, laptops, and briefcases-all attract GST,” he said.

“If you invest, buying financial instruments comes with a securities transaction tax, GST on brokerage, and GST on financial advisory services. If you make a profit, the government collects capital gains tax. Even health and life insurance premiums attract GST,” he added.

Weddings and Retirement Also Under Tax Net

Chadha highlighted that even weddings aren't spared from taxation. When individuals buy a car, they have to pay road tax, insurance, and registration fees. “In middle age, both income and taxation are at their peak. With appraisals, promotions, and bonuses, your tax slab increases, and a large portion of your income goes toward income tax. When you buy a car-GST, road tax, insurance, and registration fees apply. There's VAT, excise duty, and cess on petrol and diesel, and toll tax for driving on the road,” he stated.

He further added, “For a wedding, you pay GST on gold, clothes, and steel. Annual property tax and house tax. If you sell the house, there's capital gains tax. Banquet hall bookings, catering services, gold jewelry, clothes, wedding invitations, bridal makeup, honeymoon travel-everything attracts GST.”

MP Raghav Chadha also mentioned the taxes imposed even after retirement, stating that taxes are imposed on medicines and healthcare services. “At this age, a person wants a comfortable life. But there's tax on pensions. Tax on income from interest. You pay taxes on medicines and healthcare services. GST on life and health insurance premiums. When preparing a will for your property, there's GST on legal fees and stamp duty on registration,” he also said.

Chadha further noted that even death doesn't provide respite from taxes: “Even death doesn't spare you from taxes. Publishing an obituary in the newspaper attracts GST. Items used in the final rites-like desi ghee, sandalwood, coconut, and attar-carry GST. There's tax on land or property.”

He added, “Transferring property to family members involves GST on legal fees and in many states, stamp duty is also charged on property mutation. If the family sells it later, they face capital gains tax, stamp duty, and registration fees.”

Impact on the Economy

Chadha also discussed the impact of taxes on the economy in Parliament, questioning whether taxes boost or hinder the economy. “After paying so much tax, what does the government give us? Taxes are necessary for the government, but the question is: Are these taxes boosting our economy or eating it away? Is our life getting better or worse? Due to heavy taxation, incomes are shrinking, consumption is falling, demand isn't rising, and production is declining. The economy's wheel has slowed down,” he added.

“In this country, 80 crore people are surviving on 5 kilos of free ration. Yet, even they have to pay GST. Even the poorest of the poor are burdened with GST. Due to taxes, FMCG sales are declining, stocks are falling, consumption is decreasing, and the sale of new cars is shrinking,” he further added.

Raghav Chadha appealed to the government, saying, “The government should reduce GST. If GST is lowered, people will have more money in their pockets. With more money, demand will increase, consumption will rise, and the wheels of the economy will start turning.”

Raghav Chadha emphasized the need for reforms in the taxation system during his speech and urged the government to provide relief to the middle class.