‘Despite 50% drop in oil prices, fuel stays high…’: Finance advisor questions why tax reform is still taboo in India #IndiaFinance

Every year, India’s citizens pay layered taxes, only to watch roads disintegrate with the monsoon and fuel prices stay high despite a global crash in crude oil. Akshat Shrivastava, founder of Wisdom Hatch and full-time investor, sees a deeper problem here — one rooted in ideology and public perception.

In a recent post, he argued that low taxation and a smaller government should be rallying points for all Indians, regardless of political leaning. Instead, he says, these ideas spark backlash and politicization.

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“India is the only country on earth: where if you speak to bring in low taxation (as a Citizen), many people will make it a political issue. And, start bashing you,” Shrivastava posted on X (formerly Twitter).

He pointed to common counterarguments used to shut down calls for tax reform:

1. Previous government also did that, so why change now?
2. How will the poor in the nation survive?
3. You need to contribute to nation building.

“Rather than demanding more efficiency from the government, we load them up with more money,” he added. “As a result: roads are rebuilt almost every monsoon. Multiple layers of taxation is collected. Despite the Oil prices falling by 50% from top, petrol/diesel doesn’t even go down by 5Rs. Think about it. How stupid is all this?”

Shrivastava believes the solution lies in pushing for leaner governance. “Low taxation and a small government should be a ideological convergence point,” he wrote.

He emphasized that:

– Lower taxes force the government to be more effective
– Citizens build more wealth
– People have greater incentive to work harder and drive growth

“But, brainwashing at scale has destroyed people’s ability to think,” he said.

The post sparked widespread engagement. One user echoed his frustration: “The 50% fall in oil prices not translating to even a ₹5 reduction in petrol/diesel prices is frustrating and exposes how layered taxation eats into potential savings for citizens.”

Another commented on the deeper social implications, “70% of India still lives in Tier 2 towns or below… when people lack meaning, they feel left out… Politics fills that void… They don’t support a party. They become it.”

A third voice chimed in, “Influencers take money to promote illegal apps, manipulate people, endorse political parties but show themselves apolitical. We are totally brainwashed.”

Yet another user offered a middle path: “Less tax burden can indeed spur productivity. But high taxes also fund critical welfare for the poor. The key is balance: efficient governance + fair taxation.”