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Business News/ Politics / Policy/  Nominal tax on 65 super rich can lift 90 mn out of abject poverty: Oxfam report
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Nominal tax on 65 super rich can lift 90 mn out of abject poverty: Oxfam report

Study says the net worth of these super rich people is enough to eliminate absolute poverty in India, twice over

A recent report by UNESCAP said the gap between the poor and the rich is growing in the Asia-Pacific region, including India. Photo: AFPPremium
A recent report by UNESCAP said the gap between the poor and the rich is growing in the Asia-Pacific region, including India. Photo: AFP

New Delhi: As many as 90 million people can be pulled out of abject poverty in next five years if India levied a nominal tax of 1.5% on its 65 super rich people, said a report released by Oxfam India on Friday on poverty and inequality.

“This is an easy win for the government. By levying a wealth tax of only 1.5% on the 65 super rich, 90 million people can lead a life of dignity and free of poverty" said Nisha Agrawal, CEO, Oxfam India at the release of the report titled ‘Even it Up: Time to End Extreme Inequality’, according to a press release emailed by the British charity’s Indian arm.

The study found that in India, the number of billionaires increased from two in the 1990s to 65 in 2014 and the net worth of these super rich people was enough to eliminate absolute poverty in the country, twice over.

The report said that more than half of the foreign direct investment (FDI) in India was channelled through tax havens and the government spent almost twice as much on its military as on health.

“Money that can be invested to tackle inequality is diverted by tax breaks and public-private partnerships," the report said. Urgent action was needed to clamp down on tax evasion by multinational corporations and the world’s richest individuals, 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," it added.

A recent report by UNESCAP said the gap between the poor and the rich is growing in the Asia-Pacific region, including India, and there has been an increase in income inequality in many major economies in this region. According to government data, the poverty ratio in the country declined to 21.9% in 2011-12 from 37.2% in 2004-05 on account of increase in per capita consumption.

PTI contributed to this report.

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Published: 01 Nov 2014, 01:57 AM IST
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