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Consumer boom
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earning ₹10 lakh or more annually. Even if the tax net doesn’t capture prosperity fully, it will take quite a leap for BMI’s projections to be met.
The report says most households with high disposable incomes will reside in economic centres such as Mumbai, Delhi and Bengaluru, which would not be a surprise if it’s a sharply K-shaped recovery from the pandemic that goes on to deliver a manifold increase in middle-class purchasing power. If it happens, it will result in tax buoyancy, but we must focus on those left stuck in income brackets below the modest level at which personal tax kicks in.
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