In India, there is presently an intense argument regarding the increased tax burden among vehicles. An average citizen quite often gets alarmed by the severe amount of tax imposed on purchasing a vehicle in his or her name. On social media platforms, a piece went viral. It was penned down by someone expressing their awe after realizing all the taxes collected upon buying one car. According to the post, the taxes paid, including income tax and GST, were much more than what they had anticipated. The user, with the handle *Venkatesh*, asked how a car priced at ₹10 lakh was costing ₹13 lakh due to taxes. His post, which included the tax break-up, elicited a lot of similar reactions online. *Venkatesh*, a car buyer of Mahindra car, explained that how the car which is initial priced of ₹10 lakh goes to ₹13 lakh after tax. It was raising questions regarding the prevailing high tax rates in India. Not only *Venkatesh*, but there are many complaints that have been raised regarding the tax system of the nation along with GST. Road tax and excise duty also add to the cost of vehicles.
India's tax system has been criticized as being too complex and burdensome.
In fact, former IMF Executive Director Surjit Bhalla recently pointed out in an interview that the level of taxes in India is much higher than in several countries in East Asia, including China and Vietnam. According to Bhalla, the tax-to-GDP ratio in India is higher than in China, which is growing at a much faster pace. He argued that despite its large economy, Indian citizens bear a tax burden that is too excessive for economic development. Bhalla also tends to compare India's tax structure with that of advanced economies such as that in the United States and South Korea, stating that even though India's tax revenues are high it does not have the level of public services accorded to the taxpaying citizens in the developed world. One pertinent point Bhalla raised is the fact that tax structure in India is increasingly felt to be inefficient. The importance of raising revenues to support development continues to get emphasized by the government, with the burden being passed on to the common man. Taxes levied on the vehicles are an example of such a trend. While there are many who plead for a progressive tax system, the situation remains far from any resolution. Despite these criticisms, the government has implemented reforms that will make the collection of tax easier and more consumer- and business-friendly. The introduction of the Goods and Services Tax (GST) is one of the main reforms. However, the complexity of the tax system remains a major problem for many, especially those belonging to the lower and middle classes. People still argue that taxes are too high, that the government imposes more burdens on them.
In conclusion, the tax system in India is far from being over and done with. There are several voices calling for reforms that would decrease the total tax burden and make the system more efficient to the benefit of all. The government needs to listen to these voices and come up with a solution that balances raising funds for development without burdening citizens too much, especially on basic goods and services like vehicles.