Abhishek Raja, a tax expert and MEC of the Sales Tax Bar Association (STBA) Delhi, has joined the rising call for relief for the middle class in the Union Budget 2025.
In a post on X (formerly Twitter), Raja said, "I'm not a stock market expert, but I believe the tax increase in LTCG and STCG has spoiled the mood."
His post is significant after the BSE Sensex plunged by over 1,000 points and the Nifty fell by more than 340 points on January 13 due to a negative market sentiment.
"Budget should come with relief to common man else Middle Class is in problem," added Raja.
On January 13, the main indices, the Sensex and Nifty, fell for the fourth day in a row, with smallcap and midcap companies suffering the most. Abhishek Raja, a tax expert and MEC of the Sales Tax Bar Association (STBA) Delhi, has joined the rising call for relief for the middle class in the Union Budget 2025.
According to data, the market capitalization fell by more than Rs 12.39 lakh crore during today's session. The broader markets were the hardest hit, with the mid and small-cap indices underperforming the leading indices.
The Sensex closed 1,048.90 points, or 1.36 percent lower, at 76,330.01, following an intraday drop of 1,129.19 points. The broader NSE Nifty fell 1.47 percent, with nearly 3,500 firms closing in the red on the BSE. Key mid- and small-cap indices fell more than 4%, indicating widespread selling pressure across industries.
With just over two weeks until the Union Budget 2025, those advocating for tax relief for the country's middle class are growing more loud. A recent post by an X user sparked a discussion regarding the challenges of an important segment of society, which, according to the post, is largely ignored in national discussions.
This dissatisfaction has now been reflected in proposals for tax reform, particularly ahead of the 2019 Budget. Experts have pointed out that the middle class has continued to bear the brunt of India's high taxes without receiving significant relief over the last decade.
Akshat Shrivastava, a financial influencer, recently asserted that "India's high taxation is creating massive dissatisfaction." He advocated for a bigger tax base and lower tax rates overall, claiming that "cutting taxes would give people more disposable income, encourage spending, and reduce the burden on existing taxpayers."
Mohandas Pai, the former CFO of Infosys, has joined the call for middle-class tax relief. In a tweet, Pai emphasized the unequal tax burden borne by the middle class, saying, "The cost of living has become unbearable for many...Please provide relief to the IT-paying honest middle class."
Pai also proposed updated tax brackets, with no tax for incomes up to Rs 5 lakh, 10% for Rs 5-10 lakh, 20% for Rs 10-20 lakh, and 30% for incomes beyond Rs 20 lakh.
With the middle class frequently feeling left behind, experts believe the next Budget will be an opportunity to address these issues.
