DO YOU WANNA KNOW HOW MUCH INDIRECT TAXES WE ACTUALLY PAY THE GOVERNMENT PER YEAR EXCLUDING INCOME TAX AND OTHER DIRECT TAXES??
Here are the figures...
1. Tax on general commodities: (48% tax)
Commodities such as rice, wheat, tea, pulses, flour, oils, pulses, LPG gas, incense sticks, stationary etc. are basic needs for every family.
2. Goods subjected to special tax rates(almost 70% tax for liquor)
Cigarette, gutka or liquor.
3. Entertainment tax(20% tax)
Movie tickets, Cable bill at home.
4. Additional tax on items that are purchased periodically rather than monthly(5.7% tax)
Medicines, home accessories, hosiery, any local made goods etc
5. Municipal Tax
Slums in the interior of Hyderabad city even pay taxes such as municipal tax as they have a municipal registration number.
There are a lot others like land revenue, housing etc. but m not even going into all of those.
A common middle class family would be paying around Rs.600 as tax to the government per month for his basic needs and about Rs.7200 on a yearly basis excluding direct taxes. If each common middle class family in a city like Hyderabad paid that much tax, the total tax paid by them would be about Rs.720 crores per year.
WHAT’S WORSE IS THAT WE HAVE NO CONTROL OVER HOW OUR MONEY IS SPENT. THE GOVERNMENT DOESN’T TELL US WHERE OUR TAX REVENUE GOES. One would assume that our country needs large sum of money to sponsor the rapid urbanization and infrastructural development. Well yes, it does...BUT IS THIS WHERE ALL THE MONEY GO??
May be it goes to make good the over 45 billion rupees loss of Air India, over 400 billion rupees loss of public sector petroleum companies and over 350 billion rupees loss incurred by the power sector among others….MAYBE THEY GO IN PLUGGING THE HOLES THAT CORRUPTION HAS CREATED IN OUR COUNTRY…
WE ARE ALREADY PAYING OUR INCOME TAXES ….ISN’T IT ENOUGH IF WE JUST PAY FOR THE SERVICE WE ARE GETTING?? WHY THE EXTRA TAXES??
If we don’t pay a street hawker a penny more than what the product is worth, WHY SHOULD WE PAY HUNDREDS OF THOUSANDS OF RUPEES JUST FOR IT TO GO DOWN THE DRAIN?
A MORE IMPORTANT POINT TO NOTE IS THAT……WHY SO MANY TYPES OF TAXES??
Either take Income tax from each earning individual or levy tax on each commodity or service and exempt everyone from direct taxation…
Don’t U Think There Should A System Where Each Individual Pays A Particular Fixed Tax Per Year Based On His Earnings Instead Of Paying For Each Service He/She Uses??
DON’T U THINK INDIA NEEDS A MORE EFFICIENT & CENTRALIZED TAXATION SYSTEM??
Here are the figures...
1. Tax on general commodities: (48% tax)
Commodities such as rice, wheat, tea, pulses, flour, oils, pulses, LPG gas, incense sticks, stationary etc. are basic needs for every family.
2. Goods subjected to special tax rates(almost 70% tax for liquor)
Cigarette, gutka or liquor.
3. Entertainment tax(20% tax)
Movie tickets, Cable bill at home.
4. Additional tax on items that are purchased periodically rather than monthly(5.7% tax)
Medicines, home accessories, hosiery, any local made goods etc
5. Municipal Tax
Slums in the interior of Hyderabad city even pay taxes such as municipal tax as they have a municipal registration number.
There are a lot others like land revenue, housing etc. but m not even going into all of those.
A common middle class family would be paying around Rs.600 as tax to the government per month for his basic needs and about Rs.7200 on a yearly basis excluding direct taxes. If each common middle class family in a city like Hyderabad paid that much tax, the total tax paid by them would be about Rs.720 crores per year.
WHAT’S WORSE IS THAT WE HAVE NO CONTROL OVER HOW OUR MONEY IS SPENT. THE GOVERNMENT DOESN’T TELL US WHERE OUR TAX REVENUE GOES. One would assume that our country needs large sum of money to sponsor the rapid urbanization and infrastructural development. Well yes, it does...BUT IS THIS WHERE ALL THE MONEY GO??
May be it goes to make good the over 45 billion rupees loss of Air India, over 400 billion rupees loss of public sector petroleum companies and over 350 billion rupees loss incurred by the power sector among others….MAYBE THEY GO IN PLUGGING THE HOLES THAT CORRUPTION HAS CREATED IN OUR COUNTRY…
WE ARE ALREADY PAYING OUR INCOME TAXES ….ISN’T IT ENOUGH IF WE JUST PAY FOR THE SERVICE WE ARE GETTING?? WHY THE EXTRA TAXES??
If we don’t pay a street hawker a penny more than what the product is worth, WHY SHOULD WE PAY HUNDREDS OF THOUSANDS OF RUPEES JUST FOR IT TO GO DOWN THE DRAIN?
A MORE IMPORTANT POINT TO NOTE IS THAT……WHY SO MANY TYPES OF TAXES??
Either take Income tax from each earning individual or levy tax on each commodity or service and exempt everyone from direct taxation…
Don’t U Think There Should A System Where Each Individual Pays A Particular Fixed Tax Per Year Based On His Earnings Instead Of Paying For Each Service He/She Uses??
DON’T U THINK INDIA NEEDS A MORE EFFICIENT & CENTRALIZED TAXATION SYSTEM??
The data and some of the excerpts in the post are taken from the following pages:
http://www.jagoinvestor.com/2012/03/budget-2012-summary.html
http://in.finance.yahoo.com/blogs/strategic-moves/impact-budget-common-man-062133610.html
http://www.indianliberals.org/2011/01/a-case-against-income-tax/
http://hyderabad-india-online.com/2010/03/everyone-pays-tax/
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