India's middle class is upset. Very upset, as some X user tagged Union Finance Minister Nirmala Sitharaman and requested her to consider providing some relief to the middle class in a social media post. To this, the Union Minister, while highlighting the government's responsiveness, replied that she recognised and appreciated his concern.
The X user said, "We deeply appreciate your efforts and contributions to the country, and you have our utmost admiration. I humbly request you to consider providing some relief for the middle class. I understand the immense challenges involved, but it’s just a heartfelt request."
In response, Sitharaman, while appreciating the X user's concerns, described the current government as one that "listens and attends to people’s voices." Addressing the user, she added, "Your input is valuable."
This exchange highlights how middle-class relief measures remain a recurring topic in social media conversations with legislators.
MIDDLE CLASS TAX WOES
The middle class in India bears the burden of income tax on earnings and GST on spending. This group, about 2% of the population, plays a key role in funding the country’s infrastructure and welfare programs.
Government data from 2023 showed that only 2.24 crore individuals, or 1.6% of the population, paid taxes in 2022-23.
India has witnessed a surge in direct taxes, which has two components -- taxes on income (income tax) and corporate tax. In a good sign, direct tax receipts are more than indirect taxes now.
The 2024 budget offered some relief to salaried individuals. The standard deduction in the new tax regime was increased from Rs 50,000 to Rs 75,000, potentially leaving an additional Rs 17,500 in taxpayers’ hands.
