US Woman In Bengaluru Suggests Taxing NRIs To Ease India' "Insane" Tax Burden, Sparks Debate

Dana Marie, an American expat living in Bengaluru, has sparked a debate by suggesting that non-resident Indians (NRIs) should contribute to India's tax revenue to alleviate the burden on resident Indians. She believes this would not only transform the country but also stem the tide of brain drain. The expat, who has lived in India for several years, highlighted the hefty tax burden on resident Indians in a post on a Meta-owned microblogging platform Threads. While acknowledging the complexity, she suggested NRIs contribute a fair share, even if it's not equal to what Indians pay, to support the country's development. Ms Marie also addressed the issue of some Indians considering moving abroad solely to escape high taxes. 

"NRI's living abroad should pay taxes. It would completely change India. Not only because of the increased tax revenue, but it might encourage some of India's best talent to work or start businesses here in India instead of abroad. It might also reduce the insane tax burden on Indian residents. Some of whom are contemplating a move overseas solely to reduce their tax rates. I'm not saying it needs to be equal taxation but it should be something," she wrote. 

See the post here:

View on Threads

Her controversial proposal sparked intense debate on social media, eliciting a flurry of conflicting opinions.

One user wrote, "Taxes are based on residency, not nationality. It's quite basic because residents benefit from the services they use in the particular country they reside in. Interestingly, India in 2023 received remittances of about $125 billion, which is about 3,4% of India's nominal GDP."

Another commented, "All the F.D.I we are pumping into the economy not enough? Why don't you start us out by paying taxes in both countries? Inspire us please." 

A third said, "We are already paying taxes in the form of capital gains. Why should we pay taxes on our salaried income abroad? This will result in double taxation. Why doesn't the government improve infrastructure, governance and efficient compliance to promote investments from NRIs instead?"

A fourth added, "The purpose of direct taxes like income tax is to contribute toward the infrastructure, public services, and governance of the country where one resides and benefits from. NRIs, by definition, do not reside in India and do not use these services daily, so expecting them to pay income tax makes little sense."