'41 Crore More Indians Will Start Paying Tax By 2047,' Predicts FM Nirmala Sitharaman

An estimated 7 crore Indians currently belong to the taxable workforce, as per reports. But according to Finance Minister Nirmala Sitharaman, this number will rise nearly sevenfold to 48.2 crore in the next two decades.

What FM Sitharaman Said About Taxpayers

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In her inaugural address at the Global Fintech Fest 2023 recently, India¡¯s Finance Minister said "Each tax slab has seen a minimum of three-fold surge in tax filings. Maharashtra continues to be the leader in ITR filings."

As per ET, she added that the workforce share in the population will rise to 45% in 2047. The taxable workforce will also rise to 85.3% from the current 22.5%, she said. "There will be 48.2 crore income tax filers in 2047, as opposed to 7 crores in FY23."

"Financial Revolution Taking Place In India"

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FM Sitharaman mentioned that income tax data released in August is the biggest signal of the wide-scale formalisation of the Indian economy, further highlighting the importance of digital literacy as a significant indicator, noting that some countries excel in this area while others may lag behind. India has taken the first step towards financial inclusion, adding that the "financial revolution has even reached India's backwater towns."

In a span of four years, the number of DMAT accounts has increased over two-fold, from 4.1 crore in 2019 to 10 crore in 2022-23. A record number of mutual funds and SIPs are being registered, which help in generating long-term wealth, with the monthly flow in the mutual fund industry reaching an all-time high of Rs 15,245 crore in July 2023.

Highlighting the need to build a robust global financial system, Sitharaman said, "We¡¯re talking about responsible financial ecosystem today when globalisation is being questioned. Globalisation has helped remove poverty."

"Crypto Is A Threat As Well As An Opportunity"

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The finance minister also called for collaboration across different areas, including regulating cryptocurrencies, tackling tax evasion, and easing the global debt distress. She said active discussions are happening on this. Even the International Monetary Fund (IMF) and Financial Stability Board (FSB) have submitted synthesis papers on crypto assets.

¡°Crypto (is a) threat as well as an opportunity. But crypto is also an example to say how unless global cooperation works out well, you are not going to be able to have a responsible financial ecosystem which can regulate it as well,¡± she said.

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