Congress general secretary in-charge communications Jairam Ramesh.
Credit: PTI Photo
New Delhi: The Congress on Thursday hit out at the Narendra Modi government over the share of taxes paid by individuals having now overtaken the share paid by companies, and said corporate tax rates were cut in the hope that private investments would boom but that is yet to happen.
Congress general secretary in-charge communications Jairam Ramesh's remarks came over a media report which said income tax from individuals now comprises more than 30 per cent of the government's total tax receipts, significantly exceeding the contribution of taxes paid by companies.
"There is absolutely no question that the share of direct taxes in total tax collections must increase. They are more progressive than indirect taxes like GST," Ramesh said in his pot on X.
However, within the direct tax collections, it is not good that the share of taxes paid by individuals has now overtaken the share paid by companies, he said.
"This is largely because of the hefty cut in corporate tax rates in September 2019, a few days before the Howdy Modi event in Houston. Rates were cut in the hope that private investments would boom. That has, however, yet to happen," Ramesh said.