Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 24 December 2017

Budget Time is Taxing Time ?




On 21 Dec , following news appeared :


Hindustan Times


India’s Skewed Tax Base

A handful of people pay the bulk of our tax

95 % of tax payers pay only 9 % of taxes in India

Of the “ Total Reported Income “ , Salary Income’s share is only 33.2 %

More than 50 % of income tax collections in AY 2015-16, came from the top 0.01 % of income tax payers



Business Line

Super rich on the rise : India has nearly 60,000 crorepatis ( in Assessment Year 2015-16 )





On Feb 01, 2018 , when FM Shri Arun Jaitleyji rises to present the Central Budget in Lok Sabha , he will be faced with many ( contradicting ? ) demands :


·         Every Economist ( - whether worth his salt or not ! ) , will advocate lowering of Corporate Tax


·         Ditto with ASSOCHAM – FICCI – CII and every Chamber of Commerce


·         All politicians ( especially those belonging to opposition parties ) , are demanding lowering of Personal Income Tax on individual tax payers


·         Every  Minister wants his / her next year’s allocation of funds raised by 50 %


·         All bureaucrats belonging to Finance Ministry , want to vastly expand the tax-payer base by casting the net as wide as possible


·         The looming shadow of State Elections in 8 States in 2018 , demands that he introduce , not only a FARMER FRIENDLY budget but , generally , a VOTER BAITING budget ( stop calling it a “ Populist Budget “ ! )


·         Every State Government ( not limited to those states governed by Opposition Parties only ) , want MUCH BIGGER SHARE of GST collection ( partially, to write off Farmers’ Loans / DISCOM losses /  7th Pay Commission  /  funds siphoned away by SCAMS , etc  )


One can go on and on


Obviously , it is a “ Taxing Times “ for Shri Jaitleyji !
 

No matter what he pulls out of his brief-case , he won’t be able to “ please everyone


For the next couple of weeks , he – and his officers – will be at pains to explain why / how , this was as “ Balanced Budget “ as it can ever be


But , he has an opportunity to silence his critics – and usher an unprecedented REFORM of far reaching consequences to growth of our ECONOMY – if he announces :


TOTAL ABOLITION OF PERSONAL INCOME TAX ( OF COURSE , WITH EFFECT FROM 01 APRIL 2019 )


To know how this take India onto 10 % growth in GDP for the next 10 years , he might want to read :


=================================

 What would happen ?

InnovativeFinancing ?

IndonesiaShows the Way

What would they do ?

MakingIndia a Tax Haven ?

Don'tWant to Pay Taxes ?

ACASE FOR ZERO PERSONAL INCOME TAX

25  Dec  2017

www.hemenparekh.in / blogs

 

 

 

 



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