Archive · 28 Dec 2025
Bengaluru Entrepreneur Criticizes Tax System, Plans Exit
A businessman named Rohit Shroff, who runs a company called Aflog Group in Bengaluru, has said he will leave India in 2026.
He paid a lot of taxes, about Rs 4 crore, in the last 18 months.
He thinks the tax system in India is unfair because even people who pay taxes properly are always checked and questioned.
He says this makes it hard to do business in India.
He believes the system is not designed to help people like him who follow the rules.
Instead, he thinks it's easier to move to another country where he can grow his business without these problems.
He shared his thoughts on LinkedIn and said his decision is not about not loving India, but about the reality of doing business there.
Some people agree with him, while others think the tax rates are not too high and the system has improved.
Rohit Shroff, founder of Aflog Group, paid Rs 4 crore in taxes over 12-18 months.
He criticized India's tax system for constant scrutiny of compliant taxpayers.
Less than 5% of Indians pay direct income tax, yet they face repeated audits.
Shroff argues that compliant businesses receive no tangible benefits or recognition.
He plans to move out of India in 2026 to build his business elsewhere due to the flawed system.
- Who
- Rohit Shroff, founder and partner at Aflog Group
- What
- Criticized India's tax system and announced plans to leave India
- When
- Announced on LinkedIn last week, plans to move in 2026
- Where
- Bengaluru, India
- Why
- Due to perceived flaws in the tax and compliance system, including constant scrutiny and lack of benefits for compliant taxpayers
Critics of the Tax System
Defenders of the Tax System
Tax Scrutiny and Compliance
Critics of the Tax System
Compliant taxpayers face relentless scrutiny, making it difficult to do business in India.
Defenders of the Tax System
GST and income tax rates are not exorbitant, and the system has improved with digitalization and reduced corporate tax rates.
Benefits of Compliance
Critics of the Tax System
Compliant businesses receive no tangible benefits or recognition, making compliance a cost center.
Defenders of the Tax System
India's economic growth, poverty reduction, and the rise of unicorns show the system's effectiveness.
Quality of Life
Critics of the Tax System
Deteriorating air quality, pollution, food adulteration, and rising inflation make it difficult to justify staying in India.
Defenders of the Tax System
Moving out to save taxes and improve quality of life is a personal choice, but blaming the country is unnecessary.
- Founder's Name
- Rohit Shroff
- Company
- Aflog Group
- Taxes Paid
- Rs 4 crore
- Time Period
- 12-18 months
- Planned Exit Year
- 2026
- Primary Taxes
- GST and income tax
- Percentage of Direct Taxpayers
- 4-5%
- Weighted Average GST Rate
- Close to 10%
- Corporate Income Tax Rate
- Around 25% on profits
Sources
Bengaluru Founder Vows To Leave India After Paying Rs 4 Crore Taxes, Calls System ‘Flawed’
'Paid ₹4 Crore in Taxes, Yet…' Bengaluru Businessman Plans India Exit, Says 'Small Groups Are Targeted'
‘System penalises growth’: Bengaluru entrepreneur vows to leave India after paying ₹4 cr in taxes
‘The system is flawed’: Bengaluru founder plans to leave India, says ‘tax scrutiny is constant and layered’
