India is losing over $10.3 billion (about Rs 75,000 crore) in taxes every year due to global tax abuse by MNCs and evasion by private individuals, said a report on Friday by the State of Tax Justice, published by the Tax Justice Network.
The State of Tax Justice report said that globally countries are losing a total of over $427 billion in taxes each year to international corporate tax abuse and private tax evasion. To quantify this loss, the report said that this amount is equivalent to nearly 34 million nurses' annual salaries every year or one nurse's annual salary every second.
With regard to India, the report said $10.3 billion, or 0.41 percent of the $3 trillion GDP, is lost in taxes every year to global tax abuse.
Of this, over $10 billion is lost to tax abuse by multinational corporations (MNCs) and $200 million to tax evasion committed by private individuals.
The social impact of the lost tax is equivalent to 44.70 percent of the health budget and 10.68 percent of education spending. It also equals paying yearly salaries of over 4.23 million nurses.
The report further said that India is most vulnerable to illicit financial flows in the form of outward FDI (Foreign Direct Investment) and listed Mauritius, Singapore and the Netherlands as the trading partners which are most responsible for this vulnerability.