‘Rs 25.6L in UAE, Rs 57L in India’: Financial advisor busts ‘low-cost India’ fantasy, exhibits tax hit on way of life

Financial advisor Akshat Shrivastava, who can be Founder of Wisdom Hatch, has sparked a debate on India’s price of dwelling for the prosperous, mentioning that the nation is way from cheap as soon as taxes and way of life aspirations are factored in.

In a put up on X (previously Twitter), Shrivastava in contrast his current buy of a Toyota RAV4 within the UAE with the price of shopping for the identical automobile in India. “Total cost: 109K AED or INR 25.6L (including insurance, 3-year maintenance etc). If I would have bought this car in India, my total cost would be 40 lakhs,” he wrote.

But the true pinch, he argued, comes from India’s tax burden. “To get that 40L, I would first need to pay at least 30% taxes (vs 0% tax in UAE). So my total cost would be INR 57.14L. That’s more than double the price.”

Shrivastava criticised the favored narrative that India is a cheap nation because of buying energy parity (PPP). “PPP data does not capture this. It is only inexpensive for a certain segment of people. If you want good things in life — good house, decent car, education for kids, safety — you have to pay a massive premium.”

Shrivastava famous that the “luxury premium” isn’t restricted to vehicles. “Try this out for a decent house, school education, anything. Except for healthcare, most things are hyper expensive now,” he stated, including that even healthcare prices are more likely to rise within the coming years.

His remarks contact on a broader sentiment amongst India’s aspirational center and higher lessons: whereas primary requirements could also be inexpensive, the price of attaining a “global standard lifestyle” is disproportionately excessive.

India’s excessive taxation 

India’s private revenue tax charges are among the many highest in Asia. The prime marginal charge for people can go as much as 30% plus surcharge and cess, pushing the efficient tax burden to almost 42.7% for the wealthiest. In distinction, nations such because the UAE and Singapore provide far decrease or zero private revenue tax charges, making luxurious items and high quality providers considerably extra inexpensive relative to post-tax revenue.

This disparity is a serious driver behind India’s rising millionaire migration development. According to international wealth migration studies, India now leads the world within the ratio of high-net-worth people (HNWIs) leaving the nation relative to its rich inhabitants dimension