“Our Gameplan Seems to Tax People to Death,” Finance Startup Founder Bashes Indian Economy

In a recent post on platform X, Finance Academy Wisdom Hatch founder Akshat Shrivastava shared how nations like China, the US, and Singapore are leading far ahead of India while the focus in our country remains on taxing the middle class to fund subsidies.

“In China, even an average city outpaces Indian metros in infrastructure,” Shrivastava wrote on X. “In the US, the debate is about getting more meritorious people who can build firms and create jobs. Singapore’s economy has advanced so far that it now rejects multimillionaires from settling there. Thailand and Vietnam are already ahead in tourism, and in 15 years, India won’t even come close,” he added.

He pointed out that Indian leaders are not addressing critical issues such as sensible taxation, rolling back freebies and reservations, or boosting exports. Instead, the government is “taxing the middle class to death” risking further economic stagnation.

"Our game-plan seems to be: tax people to death. Use their money to support freeloaders. And, then expect them to stay and build the nation".

An average city in China has better infra than that of any major metro in India.

In the US, debate is going on: how to get more meritorious people there? who can build more firms. And, give more jobs.

Singapore has transformed its economy to the point: where they are NOW…

— Akshat Shrivastava (@Akshat_World) December 30, 2024

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Mohandas Pai supports Shrivastava

Former Infosys CFO Mohandas Pai supported Shrivastava calling for bold reforms in the upcoming Budget 2025-26. Pai questioned the heightening tax burden on India’s middle class, which has seen individual tax collections rise by 114% in just three years—from ₹4.8 lakh crore in FY21 to ₹10.4 lakh crore in FY24.

“Pl give relief to IT-paying honest middle class,” Pai said. “Today centre and state spend more than ₹900,000 crore of subsidies for the bottom 60%, but the middle class bears most of the tax burden, getting poorer, ignored, and very, very angry,” he added.

Pai went on to suggest ways to reduce the burden on honest taxpayers and focus on clearing tax disputes, with ₹12.5 lakh crore currently locked in litigation. “Pl stop tax terrorism as promised in 2014,” he remarked.

Nestlé India MD Suresh Narayanan stated, “The growth in the food and beverages sector, which used to be in double digits, is now down to 1.5% to 2%.”

Hindustan Unilever CEO Rohit Jawa mentioned muted urban demand, particularly in larger cities. Inflation, high interest rates, and shrinking discretionary income are declining the spending power of the educated middle class who have been sustaining the economic growth of the nation.

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