Why does tax payers feel that taxes are a burden?
Income tax is a tax that is mandatory to be paid on the part of earning people. Nevertheless, for many, it does not appear to be mandatory in our country. Tax is considered as a burden and not a price we pay for civilization. The number of people who file income tax is around seven crore, but unfortunately for the country, hardly three crore people out of them, pay tax.
India as a country of one hundred and forty crore people has only around two and a half Cr to three Cr people paying tax. Officially these people are worthy enough for the government to collect tax from. Now the bigger question is this here – Do these 2.5-3 crore people also pay their taxes fully and honestly?
Obviously, no, and well-known truth is that they do not! It is a pathetic irony that it is almost impossible to find people who pay full taxes honestly in our country. In other words, the people who pay taxes also do tax evasion.
Tax payers also do the evasion
Those who do not pay and those who do, people in both categories belong to the tax evaders’ list. Our tax system is so inappropriately structured that it forces every citizen to become a tax thief. All well-to-do rich people take refuge in chartered accounts, who teach them new tricks of tax evasion.
Thirty Crore people may pay tax
If our government is ready to accept this truth, the tax system in India can be improved so much that at least 30 crore people start paying taxes. There are 30-40 crore people in the country whom we consider to be middle class. Every middle-class citizen would like to pay tax, but if that income tax starts from 10-15 percent, then it will be difficult for him to pay tax and simultaneously arrange for two proper square meals for his family.
Sense of responsibility will arise
Instead of this, if the percentage of income tax is reduced to the bottom layer, then so many people will start paying tax and the total amount certainly will be almost double than Rs 11 lakh crore. A sense of responsibility will also arise among the people and the accountability of the government will also increase. At the same time, the dominance of our bureaucracy on the common man will also decrease.
Not a new concept
People in general are perhaps not aware of the fact that there are many countries where there is no tax on income. Aroud thirty five years ago in the year 1988 a campaign was launched by Congress leader and former Union Minister Vasant Sathe demanding that income tax should be fully abolished and in its place, tax should be imposed. They suggested that a tax imposed on expenditure is always better than a tax on income.
A big remedy for curbing tax evasion
This tax system still can be introduced which in the first place will curb people’s habit of tax-evasion. Secondly, people’s expenses will also decrease. Extravagance, as well as consumerism, will decrease and savings will increase. Thirdly, the Income Tax Department will no more be required saving crores of rupees of the government. The wastage will turn into saving.
Digital transaction is supportive to the idea
Fourthly, the tax headache of the citizens will not be there anymore. In the fifth place, with the help of today’s digital system, consumer tax will be deducted immediately on every purchase. At present, apart from the tax evasions, income tax of around thirteen thousand crores is due on various companies in Gurgaon alone. India could only gather only 11 lakh 35 thousand crore rupees tax this year.
A bigger amount of tax is stolen every year
In fact, more than this amount of collected tax is due and has been stolen as well. If income tax is reduced or abolished, then the government’s income will increase and people will sigh a breath of great relief.
