Arecent post on social media platform X by user Naveen Kopparam has ignited widespread discussions on earnings disparities and tax obligations in India. Kopparam revealed that a dosa vendor near his home earns about Rs 20,000 daily, amounting to Rs 6 lakh per month. After deducting expenses, the vendor reportedly takes home Rs 3-3.5 lakh monthly, all without paying income tax.
In his post, Kopparam wrote, "A street food dosa vendor near my home makes 20k on an average daily, totalling up to 6 lakhs a month. Exclude all the expenses, he earns 3-3.5 lakhs a month. Doesn’t pay a single rupee in income tax."
The comparison to a salaried employee earning Rs 60,000 per month added fuel to the debate. Kopparam pointed out that such employees pay about 10 per cent of their income as tax, while self-employed individuals like street vendors often operate tax-free. "But a salaried employee earning 60k a month ends up paying 10 per cent of his earnings," he added.
Kopparam's post underscores a growing conversation about the perceived inequities in India's tax system and the economic challenges of different employment models. It raises important questions about how taxation policies can be made more inclusive without disproportionately affecting the informal sector, which remains a significant part of the Indian economy.
The post quickly went viral, drawing a variety of opinions. Some users highlighted similar tax-free earnings by other self-employed professionals, such as doctors, lawyers, and small business owners. One user wrote, "Before we get down there… What about doctors, lawyers, tea shops, garages, and those traders in commercial areas? Many go on foreign vacations, renovate their homes, and buy new vehicles every year but pay no taxes. How and why?"
Others pointed out the trade-offs of self-employment, such as the lack of corporate benefits. A user commented, "They don't get corporate insurance, find it hard to secure car/home/bike loans, no PF, no assured income. Plus, he probably pays more GST than the income tax of a 60k-earning software engineer. English-speaking Twitterati should come down from their high horse as if the country runs because they file ITR."
Some users also questioned the government's role in addressing the issue. Another comment read, "When UPI was introduced and demonetisation became common, I thought the government now has direct data to bring street vendors under the income tax ambit. But they never followed through and are just happy with the increase in zero-income ITRs."
Commentaires