'This is India's growth story': Investor flags over 50% tax burden on SUV buyers

An investor's blunt post on India's tax burden has reignited criticism of the country's indirect tax structure, drawing attention to the compounding effects of GST and levies on high-end purchases. "If buy any SUV in India, you have to pay over 50% in taxes to the government of India," wrote investor A K Mandhan on X on Sunday. "You will be paying these taxes after paying taxes on your salary and capital gains. This is India's growth story."

Earlier this month, Wisdom Hatch founder Akshat Shrivastava flagged India's high indirect taxes. "Europe and India have some of the highest indirect taxes in the world," he wrote recently, noting that India's GST slabs, ranging from 5% to 28%, are among the steepest globally.

"At least in Europe, you get good pavements to walk. And, non-eroded roads. What do we get after paying so much GST?" Shrivastava asked. He has also questioned India’s capital gains tax structure, warning that raising it would only penalise those investing for long-term wealth creation. "Capital gains in Sweden is 30%. But in India, it is much lower. Should we increase our capital gains? Absolutely NOT. In fact, we should make it 0%," he posted.

According to Shrivastava, Indian taxpayers get little in return. “They do not avail government hospital help or send kids to government schools. All these costs add up for them. What’s the benefit for them at the end? Nothing,” he wrote, adding that private generators, schools, and healthcare further increase their out-of-pocket expenses.

He pointed to global tax models where capital gains are either low or exempt, including in Singapore, Hong Kong, and the UAE. “Making capital gains 0 or low in India is a sensible step. And, encourages people to see India as a wealth-building destination.”

Congress MP Shashi Tharoor recently described India’s GST as the “most complex tax in the world.” Speaking during the Lok Sabha debate on the Finance Bill, Tharoor said, “Instead of the good and simple tax we all wanted, India has multiple and confusing GST rates, including the highest GST rate in the world, at 28 per cent but tax revenues are still at 18 per cent of GDP.”

He compared India’s system to those of China, Vietnam, and Thailand—all of which collect higher tax-to-GDP ratios despite having lower GST caps. “Now, beyond exorbitant rates, our system carries a dubious tax, the dubious burden of being the most complex tax in the world,” Tharoor said.