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 :
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