Oxfam Asks India to Introduce Inheritance Tax

The top 62 billionaries of the world own 50% of world wealth while in India, the top 57 billionaires own what 70% of the population owns, said an Oxfam study that was released on Monday, showcasing rising income inequality, which portends more conflicts and rise in crime worldwide. The London-based non-profit asked India to introduce inheritance tax to end the alarming inequality.

The report titled ‘An economy for the 99 per cent’ said the total global wealth has been calculated at $255.7 trillion, of which about $6.5 trillion was held by billionaires such as Bill Gates ($75 billion), Amancio Ortega ($67 billion) and Warren Buffett ($60.8 billion) among others. In India, it said 84 billionaires own wealth of $248 billion out of the total wealth of $3.1 trillion, led by Mukesh Ambani ($9.3 billion), Dilip Shanghvi ($16.7 billion) and Azim Premji ($15 billion). The total Indian wealth in the country stood at $3.1 trillion.

“Over the next 20 years, 500 people will hand over $2.1 trillion to their heirs, a sum larger than the GDP of India, a country of 1.3 billion people,” Oxfam said, magnifying the fact that the poorest half of the world has less wealth than had been previously thought.

It was critical that the richest 10% of the population in China, Indonesia, Laos, India, Bangladesh and Sri Lanka have seen their share of income increase by more than 15% in the last two decades, while the poor have lost 15% of their income during the same period.

A top IT firm CEO in India earns 416 times higher the salary of a typical employee in his company and in terms of dividend too, the distribution of profits is hovering around 50% in India compared to more than 70% elsewhere, Oxfam said. It advised the Indian government to end wealth inequality, end poverty and introduce inheritance tax, increase the rate of wealth tax among others.

“Indian government must eliminate tax exemptions and not further reduce corporate tax rates. Governments must support companies that benefit their workers and society rather than just their shareholders,” Oxfam said in its report.