Raghav Chadha Raises the Issue of Tax Burden on Common People in Rajya Sabha, Says: “A Person Pays Taxes at Every Step from Birth to Death”
– From newborn vaccinations to funeral expenses, the government imposes taxes at every stage
– Raghav Says- India has developed-country-level taxes but Sub-Saharan-level facilities
– He Questions- No quality healthcare, no world-class education, no good roads, and no 24/7 electricity
– MP Raghav Chadha says- Heavy taxation has crippled the economy, and the burden on the middle class is increasing
– He Mentions- Excessive taxation has slowed down the economy, causing a decline in FMCG sales
New Delhi, March 27, 2025 (WISHAVWARTA):- During the discussion on the Finance Bill 2025 and The Appropriation (No. 3) Bill, 2025 in the Rajya Sabha on Thursday, MP Raghav Chadha painted a heart-wrenching picture of the tax burden on the common man’s life. Highlighting eight stages from birth to death, he explained how a person remains trapped in the web of taxes throughout their life. He urged the government to reduce the tax burden on the public, so that people have more money in their hands and the economy can move forward.
*”Today, I’m Speaking Not as a CA, but as a Common Man”*
At the beginning of his speech, MP Raghav Chadha said that the Finance Minister often responds to his questions with personal jibes—sometimes saying he isn’t a chartered accountant, sometimes questioning the authenticity of his degree. “I respect her immensely; she is senior to me in experience, position, and age. But today, I set aside that degree and speak as a common man to show how the government collects taxes at every step from birth to death—without considering what facilities the common man gets in return,” he said.
*What Do We Get in Return for Taxes?*
MP Raghav Chadha raised the question: What do the citizens of this country get in return for these taxes? He asked, “Does the government provide us with free or quality healthcare services? Do we have better roads, affordable education, or safe public transport?”
Taking a dig, he said, “In India, we pay taxes like they do in developed countries, but the services we get are like those in underdeveloped nations.” MP Raghav Chadha emphasized that the government collects taxes at every step, yet the public doesn’t even get basic facilities properly.
*The Burden of Taxes from Birth to Death*
In his speech, Raghav Chadha detailed the tax burden at every stage of life. He said, “The moment a child is born, the government is ready to collect taxes. And even when a family is mourning their loved one’s death, the government doesn’t hold back from collecting taxes.”
He pointed out that a significant portion of our hard-earned money goes toward paying taxes. “The question is, what does the public get in return for these taxes?” Labeling the current tax system as a “Life Cycle Taxation Model,” Raghav Chadha presented the details of taxes imposed across eight stages of life before the House.
*1. GST on Baby Care Items*
MP Raghav Chadha said, “When a child is born, the tax burden begins even before they open their eyes. A newborn’s vaccination attracts 5% GST. If the hospital room rent exceeds 5,000 rupees, there’s a 5% GST. Baby care items carry 5% GST. Even the registration fee for a birth certificate comes with GST.” In a lighter tone, he added, “If you distribute sweets or branded chocolates to celebrate the birth, you’ll face 5% to 28% GST.”
*2. GST Burden Even in Childhood*
He also mentioned the childhood stage in his speech. Raghav explained, “Parents buy baby food, and it attracts up to 18% GST. Diapers have 12% GST. Baby strollers carry 5% to 12% GST. Even children’s toys, including pedal toys, are taxed at 12% GST.” He continued, “A child’s first haircut or mundan ceremony at a salon comes with 18% GST. A photoshoot for the first birthday has 18% GST. Catering for the birthday party also attracts 18% GST. Even the birthday cake isn’t spared—it’s taxed at 18% GST.”
When a child starts going to school, the tax burden persists. Uniforms, shoes, school bags, lunch boxes—all attract GST. School supplies like stationery items are taxed at 18% GST.
*3. Tax Burden Increases in Teenage Years*
The tax burden grows even heavier during the teenage years, the third stage. Raghav said, “This is the most carefree and fun time of life. At this age, a child buys their first smartphone—GST applies. If the phone is expensive or imported, there’s an import duty. Phone recharges come with GST. Broadband internet has GST. Subscriptions to Netflix, Spotify, or video games also attract GST. Going to a movie with friends means GST and entertainment tax on the ticket, and even GST on different kinds of popcorn and cold drinks.” He added, “At 18, when they buy their first motorbike or scooter, they face GST, road tax, registration fees, and GST on vehicle accessories and insurance.”
*4. GST Even on Loans for Higher Education*
MP Raghav Chadha stated that the tax burden continues during the fourth stage—higher education. “Private college tuition fees attract GST. If you’re staying in a hostel or paying PG rent, there’s GST. The processing fee for a student loan comes with GST. From books to laptops, everything is taxed with GST.”
He emphasized, “By the time you graduate, you realize the government never lets you keep your hard-earned money. If you study abroad, you have to pay TCS (Tax Collected at Source) on foreign remittances.”
*5. Tax Burden Right from the Start of a Career*
In the fifth stage, Raghav Chadha explained the tax burden that begins with the start of a career. He said, “This is the trap of direct taxes. When you get your first job, TDS is deducted based on your income slab. Income tax is collected. When you get your first salary and take your parents or friends out for a meal or a movie, even that bill comes with GST. As your salary increases, so does your income tax slab. In the work-from-home culture, internet bills, laptops, briefcases—all attract GST.”
He added, “If you invest, buying financial instruments comes with a securities transaction tax, GST on brokerage, and GST on financial advisory services. If you make a profit, the government collects capital gains tax. Even health and life insurance premiums attract GST.”
*6. Middle Age – Peak Earnings, Peak Taxation*
Raghav said, “In middle age, both income and taxation are at their peak. With appraisals, promotions, and bonuses, your tax slab increases, and a large portion of your income goes toward income tax. When you buy a car—GST, road tax, insurance, registration fees apply. There’s VAT, excise duty, and cess on petrol and diesel, and toll tax for driving on the road.” The process of buying a house also comes with taxes. “Stamp duty, registration fees, GST on construction services, GST on materials like cement, marble, and steel. Annual property tax and house tax. If you sell the house, there’s capital gains tax.” Even weddings aren’t spared. “Banquet hall bookings, catering services, gold jewelry, clothes, wedding invitations, bridal makeup, honeymoon travel—everything attracts GST.”
*7. Taxes Don’t Spare You Even in Retirement*
MP Raghav Chadha highlighted the taxes imposed even after retirement. He said, “At this age, a person wants a comfortable life. But there’s tax on pensions. Tax on income from interest. You pay taxes on medicines and healthcare services. GST on life and health insurance premiums. When preparing a will for your property, there’s GST on legal fees and stamp duty on registration.”
*8. Tax Burden Even After Death*
Raghav emphasized, “Even death doesn’t spare you from taxes. Publishing an obituary in the newspaper attracts GST. Items used in the final rites—like desi ghee, sandalwood, coconut, and attar—carry GST. There’s tax on land or property.”
He added, “Transferring property to family members involves GST on legal fees and in many states, stamp duty is also charged on property mutation. If the family sells it later, they face capital gains tax, stamp duty, and registration fees.”
*What Do We Get in Return for Taxes?*
MP Raghav Chadha also mentioned the impact of taxes on the economy in Parliament. He asked, “After paying so much tax, what does the government give us? Taxes are necessary for the government, but the question is: Are these taxes boosting our economy or eating it away? Is our life getting better or worse? Due to heavy taxation, incomes are shrinking, consumption is falling, demand isn’t rising, and production is declining. The economy’s wheel has slowed down.”
He said, “In this country, 80 crore people are surviving on 5 kilos of free ration. Yet, even they have to pay GST. Even the poorest of the poor are burdened with GST. Due to taxes, FMCG sales are declining, stocks are falling, consumption is decreasing, and the sale of new cars is shrinking.”
Raghav appealed to the government, saying, “The government should reduce GST. If GST is lowered, people will have more money in their pockets. With more money, demand will increase, consumption will rise, and the wheels of the economy will start turning.”
Raghav Chadha emphasized the need for reforms in the taxation system during his speech and urged the government to provide relief to the middle class.
