A Bengaluru-based entrepreneur has publicly declared his decision to leave India, joining a discernible trend of Indian business professionals opting to settle abroad. Rohit Shroff, a partner at the content marketing platform Aflog Group, stated that the country's taxation environment, which he claims views compliant taxpayers with default suspicion, is the primary reason for his planned departure by 2026.
The Core Grievance: A System That 'Penalises Growth'
In a detailed post on LinkedIn, Shroff expressed his frustration, revealing that he has paid approximately ₹4 crore in taxes, encompassing both GST and income tax. He argued that this contribution was made "to a country that looks at its most compliant contributors with suspicion by default." Shroff's central allegation is that in India, the small fraction of the population that formally pays income tax—which he estimates at 4–5%—consistently faces the brunt of tax scrutiny.
"When notices are sent, clarifications raised, and scrutiny intensified, the same small group keeps getting targeted. The compliant. The ones already inside the system," he wrote. He described this oversight as "constant and layered," involving both GST and income tax authorities, without any corresponding acknowledgement or benefits for those who follow the rules diligently.
Shroff pointed out the operational burden on businesses, which must hire teams to file monthly GST, quarterly TDS, and annual income tax returns. He claimed that the cost of challenging the system often exceeds the cost of compliance, leading most to simply "pay, respond, and move on." This dynamic, he questions, ultimately stifles ambition: "At some point, a reasonable question emerges: what’s the point?"
Broader Implications and the Decision to Exit
Shroff framed his decision within a larger narrative about India's business climate. He emphasised that when Indians choose to leave, "it isn’t because they hate the country." Instead, he believes "the system doesn’t reward growth. It penalises it. It slows it down." He stated that individuals who think commercially, build formal businesses, and pay taxes consistently form a minority that is "politically insignificant, and therefore easy to ignore or extract from."
Consequently, Shroff said he is abandoning the "building in India" dream. "It hurts to say this, but at some point self-preservation matters more than slogans. This isn’t about patriotism. It’s about reality. The system is flawed. There is no real development, and there is no genuine ease of doing business here," he concluded.
Online Debate: Resonance and Rebuttal
The post ignited a significant debate on social media, with many entrepreneurs and professionals echoing Shroff's sentiments. One commenter agreed, "1000% agree with you. As an entrepreneur there are more ways the system can penalize/prosecute you than there are ways to reward you." Another user shared a similar disillusionment: "I moved back to India in 2019 believing the system had changed... I’m now certain it hasn’t. It’s designed to clip your wings, not help you fly."
However, the perspective was not unanimous. Several users countered Shroff's claims, attributing a smooth tax experience to strict compliance. One such rebuttal stated, "This is absolute BS. I have been running a business for last 9 years. Not one IT notice. Not one GST notice. Why? Because I am fully compliant... Leaving India is a personal choice... But do not blame the country for your decision."
The discourse highlights a deep divide in the Indian business community's experience with regulatory frameworks. While Livemint sought a comment from Rohit Shroff, his public post has already cemented his stance as a voice for a segment of entrepreneurs questioning the cost of compliance versus the promise of growth in India.
