High earning Indians pay most taxes compared to other G20 nations
I have earlier written about the number of income tax payers in India and they merely constitute a very small percentage of the whole population. Here is an interesting report by PwC which states that salaried Indian’s pay the most taxes compared to most G20 nations – actually only Italy is ahead of India!
The study takes into account only the people who earn more than $400,000 (USD) p.a. and they assume this person is married with two children, one of them aged under six.
These are their findings of the (net) take home salary in G20 nations:
- Italy – 50.59% (takes home $202,360 out of $400,000 salary)
- India – 54.90%
- United Kingdom – 57.28%
- France – 58.10%
- Canada – 58.13%
- Japan – 58.68%
- Australia – 59.30%
- United States – 60.45% (based on New York state tax)
- Germany – 60.61%
- South Africa – 61.78%
- China – 62.05%
- Argentina – 64.02%
- Turkey – 64.64%
- South Korea – 65.75%
- Indonesia – 69.78%
- Mexico – 70.60%
- Brazil – 73.32%
- Russia – 87%
- Saudi Arabia – 96.86% (so you take home $387,400 out of the $400,000 salary)
18 nations take away more salary than Indians. Saudi Arabia takes the maximum!
In India 1.3% of the tax payers contributes more than 60% of the total taxes. [Check out – List of richest Indians] The Indian I-T system is too complex and not many people are covered under this and hence only a handful Indians pay Income Tax. Indian government should consider making some changes so as to include more people who can pay income tax.
Whats your take on this?