Editorials Opinion

“Panipuri Profits vs Middle-Class Taxes: The Bitter Taste of Inequality”

Ah, the life of a middle-class, tax-paying citizen in India! If there’s one thing that brings tears to my eyes, it’s not onions at ₹100/kg, but my paycheck.

My monthly salary, meticulously chopped and sautéed by income tax, professional tax, and cess, barely lasts me till the 20th of the month. And then, just as I’m consoling myself about my sacrifices for the nation, I hear the news: A panipuri vendor earns ₹47,500 a month, tax-free! (Source: SalaryExpert.com) Now, that’s what I call “taste ka paisa vasool!”

Let me break it down for you. The vendor in question—like many others in our informal sector—earns ₹5.7 lakh annually. For the uninitiated, that’s way above the GST threshold of ₹40 lakh for goods and ₹20 lakh for services. But guess what? No GST registration, no income tax filings—nothing. Meanwhile, I, the humble cog in India’s white-collar machine, earn ₹35,000 a month and hand over at least 20% of it to the government before I even see the money.

The Numbers That Don’t Lie

Let’s talk about the larger picture, shall we? India has an estimated 1 crore street vendors. If even 20% of them earn above the GST threshold (a conservative guess), the government is losing ₹5,700 crore annually at a 5% GST rate or ₹13,681 crore annually at 12% GST (Source: SalaryExpert.com), calculation based on estimated earnings of ₹5.7 lakh/year per vendor). Add income tax losses to the mix, and the numbers start looking like Ambani’s annual bonus.

Assume a 10% income tax rate on ₹5.7 lakh annual earnings. That’s ₹57,000 per vendor per year. Multiply this by 20 lakh vendors, and the government could pocket an additional ₹11,400 crore annually. Together, this is a potential ₹25,000 crore hole in India’s tax revenue.

But no, dear government, why chase the big fish when the middle-class guppy is conveniently flapping in your tax net? After all, we’re loyal taxpayers—too scared to evade, too honest to cheat, and too small to revolt.

Middle-Class Misery: A National Pastime

Let’s put things into perspective. I hold a degree, commute through endless traffic, and tolerate a boss who thinks my soul is part of my job description. At the end of the month, I earn less than the person selling vada pav outside my office. And that’s fine—hard work deserves reward. But when I’m taxed to death while others get a free pass, forgive me for wanting to trade my MBA for a roadside food cart.

The government often talks about “broadening the tax base.” Here’s an idea: start with the informal sector, which contributes 40-50% of India’s GDP yet remains largely untaxed. Implement simpler GST processes for small businesses, incentivize registration, and enforce compliance. After all, if a chaiwala can digitize payments, a golgappa vendor can surely file taxes.

Sarcasm Alert: The ‘Fair’ System

Oh, but who needs fairness when you have the middle class? We’re the government’s favorite ATM, dispensing cash at the push of a budget. Whether it’s fuel taxes, rising GST on daily goods, or the occasional cess, we pay without protest. Meanwhile, the informal sector enjoys “tax holidays,” contributing nothing while reaping subsidies. Truly, ours is a nation of united tax inequalities.

I suppose the government’s logic goes like this: Why tax the informal sector when you have a middle class willing to shoulder the burden? Why upset the electorate with GST when you can appease them with populist schemes funded by—you guessed it—us?

A Humble Request

Dear policymakers, as you sip your chai on a taxpayer-funded flight, spare a thought for the salaried class. We’re not asking for the moon—just a level playing field. Bring the untaxed millions into the fold. Use the ₹25,000 crore in lost revenue to improve healthcare, education, or even just fix potholes (because my taxes clearly aren’t doing that).

Until then, I’ll keep paying my dues, wondering why I chose a cubicle over a chaat stall. After all, the golgappa vendor doesn’t just sell snacks—he sells freedom. Freedom from taxes, freedom from scrutiny, and freedom to earn without limits. Now that’s a taste of India we could all aspire to.

Yours truly,
An Exhausted, Over-Taxed, and Under-Appreciated Citizen

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