I agree with the view expressed by Ajit Balakrishnan in his article, "Indian salaryman: Changing times" (August 9), that the middle class has subtly manoeuvred itself for a disproportionate share of the economic pie. But I differ with him on the concept of middle class.
The National Democratic Alliance government has for the first time declared the figures of income tax payers in India. The latest available compilation says that about one per cent of the population pays taxes. With the income tax threshold being Rs 2.5 lakh per year, who belongs to the middle class?
It seems policymakers and economists have not taken note of this finding and have not revised their policies and theories accordingly. For politicians, it is beneficial to turn a blind eye to some important facts, but not so for other people.
Recently, the Gujarat government introduced a reservation policy, which has since been struck down - for economically backward classes, with a person whose annual income is not more than Rs 6 lakh as a criterion. This will exclude only the top 0.3 per cent of the people.
With the knowledge of the number of taxpayers, the classification of middle class should be revised. Whether in India or China, those who we colloquially refer to as the middle class are rich people. As they constitute the majority, the ruling class pampers them. The uber-rich would not mind paying heavy tax or a super-rich tax. But the rich among the middle class would vote with their feet.
Kirti Bhatt, via email
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