New Delhi: The share of government revenue from income tax (tax on individuals) is once again higher – at 21% – compared to that from corporations – at 18%. This reflects the trend in the last decade where India’s tax regime has tilted in favour of corporates and indirect taxes.In 2019, the government had reduced corporation tax rates to 22% for existing domestic companies and 15% for new manufacturing companies.The Budget at a Glance document shows that while the budget estimate for corporation tax for 2026-27 is Rs 12,31,000 crore, that of taxes on income is Rs 14,66,000 crore.In comparison, the budget estimate for corporation tax in 2025-26 was Rs 10,82,000 crore against that of taxes on income at Rs 14,38,000 crore. The revised estimate for corporation tax in 2025-26 was Rs 11,09,000 crore while that of taxes on income was Rs 13,12,000 crore.An analysis by PRS Legislative Research shows that between 2000-01 and 2023-24, corporation tax grew at an annualised rate of 15% and personal income tax at the annualised rate of 16%. The contribution of income tax to the total direct tax increased during this period. In 2023-24, it constituted 53% of total direct taxes, up from 47% in 2000-01.The key highlights of the 2026-2027 Union budget show that borrowings and liabilities make up the highest share of the government’s income at 24%, followed by income tax at 21%.Corporation tax contributes 18%, GST and other taxes contribute 15%, followed by non-tax revenues (10%), Union excise duties (6%), customs (4%) and non-debt capital receipts (2%).The government’s expenditure share on the other hand shows that states’ share of taxes constitutes 22%, followed by interest payments (20%), central sector schemes (17%), defence (11%), other expenditures as well as finance commission & other transfers at 7% each, followed by major subsidies (6%).Over the last decade, India’s tax regime has favoured corporates and indirect taxes. Corporate tax rates fell from 30% to 22% for domestic firms and to 15% for new manufacturers, yet collections declined from 3.5% to 2.8% of the GDP. Meanwhile, GST revenue more than doubled from Rs 4.4 lakh crore to Rs 22.08 lakh crore in the last five years, with a year-on-year growth of 9.4%.This skewed taxation regime has led to widening inequality. The World Inequality Report 2026 shows that India is one of the most unequal countries in the world. “The top 10% of earners capture about 58% of national income, while the bottom 50% receive only 15%. Wealth inequality is even greater, with the richest 10% holding around 65% of total wealth and the top 1% about 40%,” the report says.