India is losing more than $10.3 billion (around Rs 75,000 crore) in taxes every year due to international corporate tax abuse and private tax evasion, according to a report by the State of Tax Justice.
The report further added that the aggregate global tax loss count amounts to over $427 billion every year owing to global tax abuse by MNCs and evasion by private individuals. This is putting a total cost burden on countries equalling around 34 million nurses' annual salaries every year, or one nurse's yearly pay every second. With respect to India, the report stated that $10.3 billion, or 0.41 per cent of the $3 trillion GDP, is lost in taxes every year to global tax abuse.
Of this, over $10 billion is lost to tax abuse by multinational corporations (MNCs) and $200 million to tax evasion committed by private individuals.
The social impact of the lost tax is equivalent to 44.70 per cent of the health budget and 10.68 per cent of education spending. It also equals paying yearly salaries of over 4.23 million nurses.
It further said India is most vulnerable to illicit financial flows in the form of outward FDI and listed Mauritius, Singapore, and the Netherlands as the trading partners which are most responsible for this vulnerability.
The State of Tax Justice report has been published by the Tax Justice Network, together with global union federation Public Services International and the Global Alliance for Tax Justice.
The report highlights the state of global tax abuse and governments' efforts to tackle the menace.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today