'Europe and India have highest indirect taxes': Startup founder says 'at least in Europe, you get good roads'

Wisdom Hatch founder Akshat Shrivastava on Thursday raised concerns over India’s high indirect taxes, questioning whether taxpayers are getting value for the amount they pay in GST. "Europe and India have some of the highest indirect taxes in the world,” Shrivastava wrote on X, comparing indirect tax rates globally.

He pointed out that US state sales tax ranges from 2.9% to 7.25%, whereas European nations impose VAT between 17% and 27%. Other countries have relatively lower indirect taxes, such as UAE (5%), Australia (10%), Canada (5%), China (6-13%), while India’s GST varies from 5% to 28%.

Highlighting the stark contrast in public infrastructure, Shrivastava remarked, “At least in Europe, you get good pavements to walk. And, non-eroded roads. What do we get after paying so much GST?”

Shrivastava has been vocal about India's high taxation policies, frequently highlighting concerns over indirect taxes, GST rates, and capital gains tax. He has consistently argued that the country's tax burden is disproportionately high compared to the benefits taxpayers receive, particularly in infrastructure and public services. 

In a post earlier, Shrivastava also opposed the hike in India's capital gains tax, stating that lower taxation would encourage wealth creation. "Capital gains in Sweden is 30%. But in India, it is much lower. Should we increase our capital gains? Absolutely NOT. In fact, we should make it 0%,” he asserted.

Explaining his stance, he argued that unlike countries with strong social security systems, Indians must plan for retirement and job loss on their own. “In India, you need to plan for your retirement/job loss. If you lose a job—in six months, you can come on the road. In countries like Sweden, you have massive social security.”

According to him, most Indian taxpayers don't rely on government services, as they pay for private generators, high-maintenance societies, private schools, and hospitals. “They do not avail government hospital help or send kids to government schools. All these costs add up for them. What’s the benefit for them at the end? Nothing,” he wrote.

Shrivastava further noted that several countries, including Hong Kong, Singapore, New Zealand, Malaysia, UAE, and Thailand, impose zero or very low capital gains tax. He argued that taxing risk capital excessively discourages investment and affects India’s attractiveness as a wealth-building hub.

“Making capital gains 0 or low in India is a sensible step. And, encourages people to see India as a wealth-building destination,” he wrote, dismissing the argument that higher taxation is necessary for social development. “The logic of taxation needs to be there. The argument: ‘Oh, who will bear the cost of all social development?’ is not a valid reason to penalise people unnecessarily.”