No one likes to pay tax. People see it as a form of official extortion, especially in India where we resent every paisa we give to the government because we are treated as garbage by criminal politicians and civil servants and have to pay huge bribes to avail of services, which should be routine. A total of 35 million people pay any income tax, of which just 42,800 show income above Rs 10 million. " In western countries ' I pay tax, I buy civilisation ' has worked. It won't work in India. Here nobody wants to part with the money that reaches one's pocket," said former CBDT Chairman, PK Misra. Shocking how little understanding these fellows have. Firstly,no one in the west likes to pay tax. The Tea Party caucus of the Republican Party in the US is prepared to shut down the government because they think they will have to pay more money for health insurance. World's second richest man, Warren Buffett pays less tax than his secretary. Why? Because rich people finance election expenses of politicians so that they will pass laws to lower taxes on the rich when elected. Apple, with a market capitalisation of over $400 billion, pays no tax anywhere in the world.
Secondly, our tax rates are too high. In Japan sales tax in just 5% and the government is thinking of raising it to 8%. The average price of petrol in the US yesterday was $3.425 per gallon, which is 3.8 liters. At today's exchange rate it works out at Rs 60 per liter whereas it is Rs 74 for ordinary petrol and Rs 83 for premium petrol in India. Taxes on fuel and airport services are so high that few people can afford to fly so airlines are making huge losses. Stamp duty on properties are between 6 and 12% adding hugely to cost and making it impossible to buy properties. Paying wasteful rent is one of the prime causes for financial stress and the real estate sector runs on black money. In the UK there is no stamp duty on houses costing up to 125,000 pounds which works out to Rs 12.5 million. Stamp duty on properties costing from 0.5 to 1 million pounds, which would be Rs 1 billion, is just 4%. If they want people to pay taxes rates should be lowered, it should be made easy, services must be automatic and, above all, we must be treated with respect. But these fellows are so used to their cars with flashing lights and taxpayer financed junkets that their brains have stopped functioning. The Indian government is the enemy of the people.
Secondly, our tax rates are too high. In Japan sales tax in just 5% and the government is thinking of raising it to 8%. The average price of petrol in the US yesterday was $3.425 per gallon, which is 3.8 liters. At today's exchange rate it works out at Rs 60 per liter whereas it is Rs 74 for ordinary petrol and Rs 83 for premium petrol in India. Taxes on fuel and airport services are so high that few people can afford to fly so airlines are making huge losses. Stamp duty on properties are between 6 and 12% adding hugely to cost and making it impossible to buy properties. Paying wasteful rent is one of the prime causes for financial stress and the real estate sector runs on black money. In the UK there is no stamp duty on houses costing up to 125,000 pounds which works out to Rs 12.5 million. Stamp duty on properties costing from 0.5 to 1 million pounds, which would be Rs 1 billion, is just 4%. If they want people to pay taxes rates should be lowered, it should be made easy, services must be automatic and, above all, we must be treated with respect. But these fellows are so used to their cars with flashing lights and taxpayer financed junkets that their brains have stopped functioning. The Indian government is the enemy of the people.
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