The Indian finance ministry yesterday released its 'Direct Tax Code 2009' (DTC), a proposal paper on simplifying India's complicated tax structure as also to bringing down overall taxes - both with a view to improve compliance and thereby improve the government's tax revenues.
Given that the media has covered most aspects of the tax proposals on companies and individuals, i will leave it at that. My question is - what's the priority for you, the tax payer. Do you want lower taxes as the ministry has now proposed? Or are you willing to accept higher taxes, provided the government utilises the income so generated in a proper manner?
See, the Indian government anyways has no point in worrying about you, the individual taxpayer (who is in the minority). This is because elections here are decided by agriculturists, whose farm incomes are tax exempt. Then, high levels of poverty and tax evasion keeps the other majority outside the direct tax net. So, it is unlikely that aam aadmi will be a government priority when it comes to tax reforms. People like us want proper service deliveries from the government, whether it is on the healthcare front, or electricity and water supply, or even security.
With so much corruption inherent in the government machinery, even the simplified tax rules will be twisted and therefore compliance will remain a major issue in India.
Still, while lower and rational taxes will make us all happy (or so we think), we would wish for the government to utilise its tax receipts in a more constructive manner rather than using them in fulfilling their wasteful expenditure needs.
Given that the media has covered most aspects of the tax proposals on companies and individuals, i will leave it at that. My question is - what's the priority for you, the tax payer. Do you want lower taxes as the ministry has now proposed? Or are you willing to accept higher taxes, provided the government utilises the income so generated in a proper manner?
See, the Indian government anyways has no point in worrying about you, the individual taxpayer (who is in the minority). This is because elections here are decided by agriculturists, whose farm incomes are tax exempt. Then, high levels of poverty and tax evasion keeps the other majority outside the direct tax net. So, it is unlikely that aam aadmi will be a government priority when it comes to tax reforms. People like us want proper service deliveries from the government, whether it is on the healthcare front, or electricity and water supply, or even security.
With so much corruption inherent in the government machinery, even the simplified tax rules will be twisted and therefore compliance will remain a major issue in India.
Still, while lower and rational taxes will make us all happy (or so we think), we would wish for the government to utilise its tax receipts in a more constructive manner rather than using them in fulfilling their wasteful expenditure needs.
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