Raghav Chadha, an MP from the Aam Aadmi Party (AAP), discussed India's tax system in the Rajya Sabha on Thursday. He outlined the eight stages of a person's life from birth to death, illustrating how people are trapped in the tax system throughout their lives. The AAP MP called on the central government in Parliament to reduce the tax burden on the general public.
At the start of his address, AAP MP Raghav Chadha remarked that the Finance Minister often responds to his inquiries with personal jibes, occasionally mentioning that he is not a chartered accountant or questioning his qualifications. He expressed respect for them due to their greater experience, rank, and age. However, today he wanted to set aside his degree and demonstrate that, like an ordinary citizen, the government imposes taxes at every stage from birth to death, without considering the benefits provided to the common man in return.
MP Raghav Chadha raised the question that what are the countrymen getting in return for this tax? "Does the government give us free or quality health services? Do we have better roads, affordable education or safe public transport?" he asked, adding that we pay taxes like developed countries in India, but the facilities are like underdeveloped countries.
During his address, Raghav Chadha elaborated on the effects of taxation throughout various stages of life. "From the moment a child is born, the government stands ready to collect taxes and as long as a family is mourning his death, the government does not hesitate to collect taxes," he said.
"A large part of our hard-earned money goes towards paying taxes. The question is, what is the public getting in return for taxes? Raghav Chadha termed the current tax system of the country as 'Life Cycle Taxation Model' and placed the details of the tax levied in eight stages of life before the House.
AAP MP Raghav Chadha highlighted that taxation begins from the moment a child is born. Vaccinations for newborns incur a 5% GST. If the hospital room rent exceeds Rs 5,000, a 5% GST is applied. Baby care products are subjected to GST rates ranging from 5% to 18%. There is also a registration fee for the birth certificate, which includes GST.
"If sweets or branded chocolates are distributed during the birth celebrations, then GST ranges from 5 per cent to 28 per cent. At the same time, he also mentioned the stage of childhood after birth in his speech. Raghav Chadha said, "If parents buy baby food, then it is GST up to 18%. 12% GST on diapers. 5% to 12% GST on Baby Strollers. 12% GST on children's toys, be it pedal toys.
He further added, "Child's first haircut or tonsure- 18% GST at salon. 18% GST on first birthday photoshoot. 18% GST on catering at birthday parties. 18% GST on birthday cakes too. Even when the child starts going to school, the tax does not leave behind. Uniforms, shoes, school bags, lunch boxes – all these are GST. Stationery items are taxed at 18% GST."
In the third adolescence, the tax burden increases further. "This is the most enjoyable and carefree time of my life. At this age, the child buys the first smartphone, GST on it. If the phone is expensive or foreign, import duty. GST on phone recharge. GST is levied on broadband internet. GST has to be paid on subscriptions to Netflix, Spotify, video games. Go to a movie with friends, entertainment tax, popcorn and cold drinks have to pay GST. He further said, "If you buy your first bike or scooter at the age of 18, then you have to pay GST, road tax, registration fee, as well as insurance and vehicle accessories. MP Raghav Chadha said, "In the fourth phase i.e. during higher education, tax hits continue. GST is levied on the tuition fee of private colleges. If you are paying the rent of hostel or PG, then GST is charged on it. GST on Student Loan Processing Fee. From books to laptops, everything is GST.
"By the time you graduate, you realise that the government doesn't allow you to keep your hard-earned money. If you study abroad, you have to pay TCS (Tax Collected at Source) on foreign remittances. Raghav Chadha also explained the impact of tax as soon as he starts his career in the fifth phase. "This is a web of direct taxes. If the first job is done, TDS is deducted according to the slab rate. Income tax is charged. If you get the first salary, then take parents or friends to see food or pictures, the government also charges GST on that bill. If the salary increases, then the income tax increases according to the slab. GST on internet bills, laptops, briefcases, all these in work from home.
"If you invest, then there is a security transaction tax on the purchase of financial instruments, GST on brokerage, GST on financial advisory. Capital gains tax on profits. GST is also required to be paid on health and life insurance premiums. Referring to the sixth stage, the AAP MP said, "Promotion or appraisal increases salary, tax slab increases, performance bonus also tax. Buy a car, GST, road tax, insurance, registration fee. VAT, excise duty and cess on petrol and diesel, and toll tax for driving on the road. Then, there is the tax impact in the process of buying a home. Stamp duty, registration fee, GST on construction services, GST on materials such as cement, marble, steel. Annual Property Tax and House Tax. If you sell a home, capital gains tax. There is no tax relief even on the occasion of marriage. From banquet hall bookings, catering services, gold jewellery, clothes, wedding invitation cards to bridal makeup and honeymoon travel, GST on everything.
MP Raghav Chadha mentioned the tax to be levied even after retirement. "At this age, a person wants a comfortable life. But, pensions are taxed. Tax has to be paid on interest income. They pay taxes on medicines, healthcare services. GST has to be paid on life and health insurance premiums. Legal fees and GST on preparing a will of the property. Stamp duty also has to be paid on the registration of the will. Raghav Chadha insists, tax does not leave even after death. GST on publication of condolence messages in newspapers. GST on desi ghee, sandalwood, coconut, perfume at funerals. Tax on land or property. Legal fee and GST on transfer of property to family. If the family sells it further, then capital gains tax, stamp duty, and registration fee have to be paid.
Apart from this, stamp duty has to be paid in many states on the mutation of land or property. AAP MP Raghav Chadha also spoke about the impact of tax on the economy. "What does the government give us after paying so much tax? Taxes are important for the government, but the question is, are these taxes increasing our economy or eating our economy? Is our life getting better or worse? Due to tax, income is falling, consumption is falling, demand is not increasing, production is falling. The economy has slowed down. "In this country, 80 crore people are living with 5 kg free ration. But, GST is also taken from them. Even the poorest of the poor pay GST. Due to tax, FMCG sales are declining, stocks are falling, consumption is declining, sales of new vehicles are shrinking. The government should reduce GST. If you reduce GST, money will come in the pocket of the public. If money comes, demand will increase, consumption will increase and the economy will move around.