consumer burden

Rising Share of Personal Income Tax and Indirect Tax

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Rising Share of Personal Income Tax and Indirect Tax

– The collection of personal income tax and indirect taxes has increased, while collections from corporate taxes have reduced.
– India’s net direct tax collections grew 17.7% in 2023-24 to hit Rs.19.58 lakh crores.
– The share of corporate taxes contribution to overall tax collection dipped to 46.5% from 49.6% in 2022-23.
– Indirect taxes, including union excise duties and the Goods and Services Tax, have increased from 2010-11 onwards.
– The majority of individuals filing personal income tax have an annual income ranging from Rs 1 lakh to Rs. 5 lakh.
– India has among the highest effective personal income tax rates among BRICS economies.
– Rising share of personal income tax and indirect taxes can lead to income inequality, consumer burden, economic inefficiency, tax evasion, and macroeconomic instability.

No fuel to run the economy

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No fuel to run the economy

Inflation in Cyprus was reported to be lower than expected and below the Eurozone target average of 2%. Despite this, the real economy is facing challenges with small to medium-sized enterprises closing almost daily due to rising electricity costs and fuel prices, which are expected to increase further due to a rise in world crude prices. Small businesses are also burdened by local fees and taxes. The consumers’ association criticized the Energy Ministry for a lack of transparency regarding the formula for determining fuel prices at the pump, suggesting that more openness could have reduced fuel prices by about 3-4 cents a litre during October to December. Additionally, the price of olive oil increased by 54% over the past year, with a further 3.4% increase in February. Some goods and services have helped keep the consumer price index in check, but prices in several sectors continue to rise due to a lack of healthy competition in the Cyprus economy. The “photovoltaics for all” scheme has been criticized for not adequately supporting households unable to invest in lower-energy appliances. The current administration has been reluctant to introduce more support measures for vulnerable people, aiming to maintain a sound fiscal policy.