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I know that Delhi, Maharashtra and Karnataka account for much of India’s income tax collections. But, the fact that Delhi’s direct tax to GDP ratio is as much as 21%, while for Bihar it’s 0.9% - That is staggering! 🤯🤯 Came across this fantastic Hindu Businessline report, which analysed the direct tax contribution to GDP for 15 states and UTs. And what I learned left me nuts! .. So, Delhi’s direct tax to GDP stands out as the highest at 21.2%. -> And at the second and third spot at Maharashtra and Karnataka at 16.6% and 9.3% respectively -> Now, if you notice, the gap between Maharashtra and Karnataka is humongous, indicating how much of the state’s GDP/economy is led by activities where people don’t earn enough, or earn what’s non-taxable But, what’s strange is how this %age falls for 4th and 5th rankers, which makes Karnataka’s figures look like fantastic 😅😅 .. Let me explain. At the fourth spot, we have Haryana, which has a direct tax-to-GDP ratio of just 4.6% - Half of Karnataka’s! Then you have Tamil Nadu at 4.5% and Gujarat at just 3.9%. And this should explain why we lag behind as a country. .. The best and biggest of our state economies, like TN and Gujarat, also have a majority of people employed in activities which don’t earn them much. While getting people jobs is a big problem that these states have solved masterfully, ensuring an income that reduces the income tax burden on a select few Indians is something that continues to persist. And well, that’s something that must be a national priority. .. Why do I say that? Look at other states - You have West Bengal at 3.6%, Telangana at 2.7%, Kerala at 2.3%, Rajasthan at 2.2%, and UP at 1.7%. And then you have Bihar at a pathetic 0.9%! 😅😅 Need I say more? ..