Friday, June 27, 2014

Taxation in India is Modern Slavery

Taxation in modern India is nothing less than the "Dugna Lagaan" which we had paid to the Britishers. It is actually a legacy of Britishers continued by subsequent governments for the last 65 years. Many new ways were found by the government to tax the citizens without changing the services they provide. Policing, Health  Education for which we pay taxes multiple times has not improved and are in shambles. Here i would like to put more emphasis on the economic inequality enforced but before that i would like to tell you how much are we taxed in India.
First i would like to tell you that we in India are taxed by center, state and sometimes by the municipality. There are two types of taxes direct and indirect. Different types of taxes taken by the central govt are taxes on income, export duties, corporation tax, estate duty, terminal taxes, stock market taxes, newspaper taxes, inter-state trade commerce taxes etc. Tax which comes under state are land revenue collection, agriculture income tax/duties, land and building tax, minerals rights, excise duty, VAT,  electricity, sales tax, advertisement tax, vehicle tax, toll tax, professional tax, trades, callings , employment, luxury tax (entertainment, amusement, betting, gambling), stamp duty.Entertainment Tax is levied by the state government and each state taxes different types of entertainment and at varying rates. So whenever you are visiting Cinema halls/movie theaters, Cable/satellite television stations,Pubs, discos ,lounges,Casinos,Ticketed exhibitions,Live shows (like dance, music and theater), Amusement parks, Horse racing meetings , sporting events, Boat rides, cruises and water sports, Internet cafes etc you are paying tax to the government.Luxury Tax is also a state government tax. It includes tax on hotel rooms , hospitality services It varies from 0% to 25% on the base price Road tax is a combination of central and state govt tax. When you are buying a new vehicle you are paying Central VAT, VAT, import/excise duty, Central sales tax, Motor vehicle tax, passenger/goods text, Tolls, State entry tax.Contracts, mortgages, licences and commissions  has a stamp duty which we pay to the state govt.Today we have Service tax, Excise and VAT which should be merged into a common Goods and Service tax as proposed by the ex FM.
I know you must be baffled by the way GOI, State and the Municipalities loot citizens multiple times at every step and even then the fiscal deficit is always huge. Another important analysis points that common man who works hard are taxed more. You work hard and earn money. You use that money for your livelihood including entertainment, comfort etc. But is the govt charging people for working hard. A salaried employee first pays income tax  then the taxed money is used to pay other types of taxes like property, VAT, Entertainment, luxury, Sales, Service, Transaction etc etc goes on till your salary is over :):) and you are living in debt. The whole countrymen lives on debt but still the looted money can't help reduce the fiscal deficit.
You must be thinking if the country pays so much and in so many ways where is this money going. It is actually going in schemes like NREGA, Food Security and other types of subsidies like diesel subsidies, LPG. Last but not the least it is used as a salary of the govt employees who are supposed to be the public servants but actually we have to pay another type of tax to them (some of them but of course it gets divided equally afterwards) in the form of corruption tax. Please don't mistakenly read as as Corporation tax. It is actually Corruption tax. There is a huge difference between Corporation tax and Corruption tax. Corporation tax is high tax on the employment generating companies and industries plus the corruption tax which these bigwigs have to pay. Now these Socialists have even demanded to tax them for creating employment because they can't bear the 14% increase in the railway fare. This country is in total mess and the tax collection in this country is same as Britishers. Don't read me wrong. I am not blaming Britishers for this modern Slavery but my own countrymen who rules this country like autocrats.
Equality in India is getting diluted with each passing day. Subsequent governments in the past have damaged the principle of equality. Citizens are treated differently depending on their social, economic background. When a government starts charging riches more, then the rich and influential either save their money in Swiss banks or themselves move out of country to a better place where equality prevails. Today when the student does not find a seat in a college he pays hefty fees in US/UK/Australia or any other country and does not comes back to India. In this way we have lost lots of talent. When the Corporate world is taxed heavily they start registering their companies in countries like Singapore etc., where they get relaxations. I think BJP govt has to think  and stop charging middle and upper class for watching movies and eating out. In a country where 73% reservation for a 27% population exists, i think it is logical that the creamy layer will leave this country leaving behind the poor and the deprived. Even the CEO of Infosys invested in US and he has 700+ apartments in US. I believe he does not trust your tax policy and he should not in fact because you never know when the GOI of the State Govt will ask him to give his hard earned money to fund railway debts or some other subsidy. Come out of this extra socialist attitude and start treating everyone equally. Unity does not sustain if Equality is not there. We have lots of hopes for the Modi Govt and the new Finance Minister but i know you will not do it so soon. In short taxation policies under an Autocrat/King were better because they were one time and equal for all.
Jai Hind

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