Tax Terrorism and NDA

On 23 July Nirmala Tai announced the country’s budget. The opposition criticized it as being anti-poor and lacking relief for the middle class. Meanwhile, the BJP claims it will be a game-changer for the underprivileged and middle-class citizens. 

In my view, this budget is merely old wine in a new bottle. The only new provision I found, apart from the existing ones, is the internship program for youth. Otherwise, most of the other aspects remain unchanged.

Tax Terrorism 

In this annual finance report, we find a 28% GST on cars and bikes and a 5% GST on helicopters and airplanes. Means government thinks cars and bikes pollute the environment more than airplanes. However, In Call BJP MP Vijay Baghel explained that helicopters and airplanes are considered high-value, which is why they have a lower tax rate. He also mentioned that bikes and cars can be replaced by public transport, but helicopters and airplanes cannot.

Aircraft and helicopters are high-value goods, but with high income, we also face high interest. For example, if we have an amount equal to the cost of a bike, say ₹1 lakh, and invest it in other things (with a return of 10%), we get ₹10,000. However, if we have an amount equal to the cost of a helicopter, say ₹10 crore, we can generate a return of ₹1 crore from it. So, in my view, it is illogical to tax high-value items at a low rate.

Secondly, as the M.P. said, cars and bikes can be replaced by public transport. In India, there are 1 crore gig workers (according to Niti Aayog), and their livelihood depends on bikes. Additionally, 3 crore+ workers are employed in the transport sector (according to Nitin Gadkari). So, I don't see how the BJP will manage this. Apart from this, I spoke with a local gig worker who said, 'Sir, I took a loan of ₹1,12,000 for my bike, out of which approximately ₹10,000 is the interest and ₹28,000 is tax, which is equal to my 4-month salary' It doesn't sit well with me that gig workers pay such high taxes for the country's development, especially when we hear about 12 bridge collapses in Bihar (as reported by India Today). Additionally, the Atal Setu road was damaged within four months of its inauguration, and there have been incidents of water leakage in Parliament. It's puzzling how the government invests public funds in these failed projects, while gig workers receive no job security or health benefits

Along with this, I also want to let you know that it is only the NDA government that implemented an 18% GST on education and reduced university grants by half. Eg- the fees at Delhi School of Economics were approximately ₹5,000 per year in 2022, ₹13,000 per year in 2023, and ₹15,500 per year in 2024. Additionally, the education budget is less than 3% of GDP, which is an all-time low. I don't understand how the government plans to increase internship opportunities and skill development by reducing these grants.

In this budget, what I like is that the government is providing homes to the homeless and a ₹5 lakh insurance facility for the poor, which will help reduce out-of-pocket expenses. I am hopeful that the construction of these houses and the insurance scheme will be free from corruption