Will pay, won't spend.

 "India's tax collections were up 16.15% year-on-year, reaching Rs 25.86 trillion as of March 16, as per the latest data released by the Central Board of Direct Taxes (CBDT)." ET. "Net direct tax collections from 1 April 2024 to 15 March 2024 stood at Rs 21.26 trillion, up 13.13% year-on-year, boosted by total advance tax collections of Rs 10.44 trillion, up 14.62%, official data said." "Out of the net direct collections corporate tax stood at Rs 9.69 trillion and personal income tax stood at Rs 11.01 trillion." ET. "India's real Gross Domestic Product (GDP) growth for FY26 is projected to be 6.3-6.8%, according to the Economic Survey 2024-25." ET. "For the full financial year 2024-25, the National Statistics Office (NSO) has pegged the GDP growth at 6.5%. To achieve this, the growth in the fourth quarter should be 7.6%." Also, "The data for FY 2023-24 has been revised upward to 9.2% from 8.2%." DH. According to the Economic Survey, "Corporate profitability soared to a 15-year peak in FY24, fueled by robust growth in financials, energy and automobiles." "However, while profits surged, wages lagged. A striking disparity has emerged in corporate India: profits climbed 22.3% in FY24, but employment grew by a mere 1.5%." ET. So, companies are making huge profits, employing fewer people and paying lower wages, but net income tax collections from individuals was Rs 2 trillion more than from companies. There can be only one reason for this, and that is the rate of taxes on individuals is far higher than that on companies. Not surprising that, "Several lifestyle retail chains and restaurants are shutting stores on the high street and in smaller towns as overall consumption has slowed over the past year." ET. Not just direct taxes, the government tries every ploy to squeeze money out of citizens. "The median global tax rate for carbonated (non-alcoholic) beverages hovers around 18.4%. India's total tax rate for carbonated beverages of 40% is not only significantly higher, but also places the country in a minority group." With a total of 351.9 million tonnes, India is the world's second largest grower of fruits and vegetables. "High taxes, however, have prevented India from leveraging this advantage to capture a share of the growing global demand," wrote Aruna Sharma. The annual Budget 2025 has increased income slabs at which taxes will apply, with a rebate of Rs 60,000, so that those earning up to Rs 1.2 million will not have to pay any income tax in FY 2025-26. cleartax.in. This is to put more money in the hands of consumers and increase demand. Either the government is being bold in raising the threshold for paying taxes by 1.7 times, "Or it's a tacit admission that consumption taxes are so high that even people making five times the average adult wage are struggling to fork out income taxes," wrote Andy Mukherjee. "India has the highest GST of 28%. Actual tax rates are even higher if we include cess and other charges. However, India's tax revenue as a percentage of GDP is 18%. In contrast, China raises 20% of GDP in tax revenues, while having the highest GST slab of 13%," wrote Ghanshyam Sharma. People cannot avoid income tax. But they can and are refusing to spend. Unless they see reason.