Dear Friends,

When comparing the Indian tax system with that of developed nations like Germany, the central point of debate is not merely the tax rate itself, but rather the aspect of "Social Security" received in exchange for those tax contributions.

In Germany, a citizen pays approximately 42% of their income as tax. Though it is considered much high and added burden, this provides a comfortable and comprehensive safety net for its people.

From the government providing 60% of one's income during periods of unemployment, to covering the costs of children's education and providing a monthly stipend for every child until the age of 18, the country's tax system effectively resolves the fundamental livelihood challenges faced by its citizens.

There, paying taxes is not perceived as a burden; rather, it is viewed as a form of insurance for a citizen's future.

Contrary to this, the situation being in India is quite different.

Although the maximum income tax rate in India is 30%, when one factors in cess and indirect taxes, such as the GST, the overall tax burden borne by the middle class becomes substantial.

Within the Indian tax framework—which was originally designed based on British-era statutes—the direct benefits accruing to taxpayers are minimal.

Even after paying taxes, the Indian citizen is compelled to turn to private schools for quality education and private hospitals for emergency medical care.

As the public services provided by the government have yet to attain global standards, the taxpayer is forced to spend a significant portion of their income once again to secure these very same basic necessities.

This situation instills in the public a sense akin to "Double Taxation."

From an economic perspective, it is the duty of a welfare state to demonstrate the same level of rigor in ensuring the safety and security of its citizens as it does in the collection of taxes. In Germany, where tax revenue is utilized effectively ranging from free education to prompt emergency services—tax evasion is regarded as a social crime.

In India, however, where taxpayers constitute a tiny minority, the absence of either personalized benefits or social security schemes for them represents a grave economic injustice.

If a nation is to truly evolve into a superpower, it must instill in its tax-paying citizens the confidence that "the government will protect us" whether during their twilight years or in times of crisis.

As long as that confidence remains absent, the Indian taxation system will continue to be perceived merely as a burden forcibly extracted from a select segment of the population.

We need to adjust a lot to our lifestyles due to this!