India’s burgeoning tax receipts have surprised those who termed the pandemic as a death knell for India’s struggling economy. Rarely has an economic recovery been so dramatic as the one being seen now.
That India’s tax collection is on track to beat pandemic hit FY 2021 is in itself surprising. Even more surprising is that they are well positioned to beat the collections of FY 2020 which was a regular growth year. Indeed, India is in the middle of an unprecedented tax revenue generation cycle.
Way back in 2008, he was stuck in a traffic jam in Mumbai and was reading the innumerable billboards alongside the highway. On one he saw a picture of a gleaming, oversized New York blue glass skyscraper apartment building with improbable hanging gardens on random floors. The advert was for an investment fund with a “guaranteed return of 20%”. At that moment it dawned upon him how messed up the market was. Within two weeks he was 90% in cash.
Captain Eddie Rickenbacker was a demi-god during the fifties. This American Ace of Aces was not just a celebrated fighter pilot (26 ariel victories in just two months of combat flying), but also a race car driver, airline executive and wartime adviser.
Everyone wants to be financially independent, but few are acutely aware of what it means to them, and the principles that need to be followed to achieve it.
The recent promise for the markets and the economy all started in September 2019 with the cutting of Corporate tax rates. This event, which we’ve referred to in many of our write-ups in the past 24 months, is very significant because it marks a shift in government policy away from boosting share of labor compensation in GDP and towards boosting share of corporate profits in GDP.