The latest report ‘Even it Up: Time to End Extreme Inequality’, given out by Oxfam India has strongly asserted that the net worth of all the billionaires in India is sufficient to absolutely exterminate poverty from the country twice over.
The key to bring about this change and thus shrink the rich and poor gap, as presented forth by the report is, levying a small amount of tax on the ultra-riches. If only the country could take this step to stop inequality from rising, it will stand witness to total elimination of poverty within a period of 5 years.
More than nine crore people who suffer from miserable poverty could see immense relief if a wealth tax of 1.5 per cent is levied on the rich class of the country.
Oxfam India CEO Nisha Agrawal said, “…research has found that if India stopped inequality from rising, they could lift 90 million more people out of extreme poverty by 2019.
“This is an easy win for the government. By levying a wealth tax of only 1.5 per cent on the 65 super rich, 90 million people can lead a life of dignity and free of poverty.”
The analysis carried out by Oxfam discovered that the number of billionaires in India used to be just 2 in the 1990s, and but has now augmented to 65.
The report said, “Money that can be invested to tackle inequality is diverted by tax breaks and public-private partnerships.” It brought to light that the government’s defence expenditure was twice the amount it spends on health and over half of the FDI or foreign direct investment in the country is routed through tax havens.
Furthermore, Oxfam India said that in order to curb tax evasion by world’s richest individuals and multinational corporations, there needs to be taken urgent actions before it becomes too late.
It said, “Global corporations and the wealthiest people must pay their fair share to governments’, so that countries can tackle inequality and build fairer societies.”
The report disclosed “A significant number of India’s billionaires made their fortunes in sectors highly dependent on exclusive government contracts and licenses, such as real estate, construction, mining, telecommunications and the media,”
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Role of government behind the worsening situation:
“At least half of India’s billionaire wealth came from such ‘rent-thick’ sectors of the economy. The net worth of India’s billionaires would be enough to eliminate absolute poverty in the country twice over, yet the government continues to underfund social spending for the most vulnerable. As a consequence, inequality in India has worsened,” added the report.
Earlier in October, UN-ESCAP had presented a report that said that divide between the poor and the rich is broadening in the India and adjoining countries. It also said that the income inequality in the major economies of the Asia-Pacific region is on escalation.
As per the data provided by the government, poverty ratio in the country dropped to 21.9 per cent in 2011-12 from 37.2 per cent in 2004-05, in view of increase in per capita consumption.
The national poverty line was valued at Rs 1,000 per capita per month in cities and Rs 816 per capita per month in villages, in 2011-12. Which meant that people who consumed goods and services over Rs 33.33 in cities and Rs 27.20 per capita per day in villages were not categorised as poor.
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About Tushita
Tushita is a political writer at thenational.net. Her deep rooted interest in politics, passion for writing and craze for travelling define her. Writing since her school days, she aspires to write lifelong and make the world a happier place to live with the power of her pen.
