BJP leader Shehzad Poonawalla on Monday, August 17, called for personal income tax on the salaried middle class to be scrapped, arguing that taxpayers continue to face poor roads, air pollution, unsafe water and corruption despite paying taxes. In a post on X, he asked, “Middle class earns.
Middle class pays. But what does the middle class get back?” and called for the tax to be abolished until India provides “world class facilities”. His remarks came on the same day he announced his resignation from all BJP positions and primary membership, citing “pressing emergency financial and personal circumstances” and his intention to move towards the private sector.
His earlier attempt to resign had reportedly not been accepted, prompting the renewed resignation. There has been no reported government announcement supporting the abolition of personal income tax for salaried taxpayers, nor has Poonawalla specified an income threshold or alternative source of revenue for his proposal.
His demand comes despite recent tax relief for the middle class: under the new regime, individuals with taxable income up to ₹12 lakh can claim a rebate, while salaried taxpayers can effectively have no tax liability up to ₹12.75 lakh because of the ₹75,000 standard deduction.
‘Middle Class Pays, But What Returns?’
Poonawalla’s intervention centres on a grievance frequently voiced by salaried taxpayers: their income is relatively easy for the tax system to track, while they may still have to spend privately on services they believe should be adequately provided through public infrastructure.
Listing “bad roads”, “air pollution”, “toxic water” and “corruption”, he questioned whether the quality of public services matches the financial contribution made by the middle class. His call goes beyond the tax relief already introduced by the Centre.
The government has previously described its revised tax structure as a major benefit for middle-class households, saying that individuals earning up to ₹12 lakh under the new regime would have no income-tax liability, with the effective threshold rising to ₹12.75 lakh for salaried taxpayers after the standard deduction.
The Income Tax Department’s current guidance confirms a rebate of up to ₹60,000 for eligible resident individuals with total income up to ₹12 lakh under the new regime. Poonawalla, however, is seeking a much broader change: scrapping personal income tax for the salaried middle class altogether until public facilities reach what he considers a world-class standard.
He has not publicly defined who should qualify as “salaried middle class” or explained how the resulting revenue gap should be addressed. There has also been no reported official response from the Finance Ministry or the BJP specifically endorsing his proposal.
Resignation Adds Political Context
The tax demand came alongside Poonawalla’s renewed resignation from the BJP, adding a political dimension to his comments. On August 17, he announced that he was stepping down from all party positions and primary membership, citing “pressing emergency financial and personal circumstances” and saying he planned to transition towards the private sector.
He described his departure as a “warm goodbye” to the party he said he loved, while expressing gratitude towards senior BJP leaders. His resignation followed a period of uncertainty over his political status. In late July, Poonawalla removed “BJP National Spokesperson” from his X bio and retained a description of himself as a “lifelong follower” of Prime Minister Narendra Modi, triggering speculation about his exit.
Reports at the time said there was no immediate official confirmation from either the BJP or Poonawalla. He later formally reiterated his decision to leave the party. Poonawalla had joined the BJP in 2017 after leaving the Congress and became one of the party’s most prominent television and social-media spokespersons.
His resignation announcement therefore marks a significant change in his political career, although he has not indicated that his departure was directly caused by his views on income tax.
The wider middle-class tax debate, meanwhile, remains unresolved. Income tax is not a direct user fee for roads, water or other individual services; it forms part of the government’s broader revenue pool used to fund public expenditure.
Eliminating a substantial category of personal income-tax receipts would consequently require the government to identify alternative revenue sources or reduce spending.
The Logical Indian’s Perspective
Poonawalla’s question what does the middle class get back? deserves to be taken seriously, even if the proposed solution requires a much deeper economic discussion. Citizens have every right to demand clean air, safe water, functioning roads, reliable public transport, accessible healthcare and transparent governance, particularly when they contribute regularly to the public exchequer.
At the same time, taxes cannot simply be viewed as a transaction where every taxpayer receives an individual service equivalent to what they have paid. The more constructive conversation is about whether public money is being spent efficiently, whether essential services are reaching people fairly, and whether governments at every level are accountable for the outcomes they promise.
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