India is surviving on black money.

We have been banging on about the excessive levels of taxation in India extracted by force by a vigilante tax department supported by a hostile government, keen to extend its survival by bribing voters with taxpayer money. This has naturally resulted in a jump in litigation as hapless citizens look to courts for protection, as explained by one Guatam Nayak in an article. Tax fellows have been set a target of growing collections by 20% which is impossible when the economy is growing by 5%. The threat of cessation of investments by foreign companies led to the dilution of the General Anti Avoidance Rules, which sought to collect taxes on transactions going back to 1965. But citizens do not have the option of saving money in a less parasitic environment. Encouraged by politicians tax fellows seek to ensnare people by dubious interpretation of tax laws and since 50% of the demand has to be deposited before appeal is heard an honest taxpayer ends up being unlawfully victimised. The system is based on extraction of money by force and is known as Tax Deduction at Source. Thus, banks are required to deduct 10% tax at the time of paying interest on deposits even if the total tax paid by an individual far exceeds her annual tax liability. The person then has to file returns to claim a refund which may take over a year. It is an adversarial system practised with a ferocity that would have made the British proud. If direct taxes are severe indirect taxes are much worse because they are levied in stages which keeps them hidden. A person travelling from Delhi to Toronto has to pay a total of $183.03 in taxes. Austria charges $34.60 in security and service taxes at Vienna airport, Germany charges $36.70 at Frankfurt and Canada charges $51.70 on security, sales tax and improvement fee at Toronto. Delhi is the highest at $60.03 under Passenger Service Charge, Passenger Service Fee and India Development Fee. Taxes on domestic flights are equally onerous but are hidden under incomprehensible codes. This is why an American is able to fly 1.8 times every year while an Indian is able to fly on average once in every 10 years. Since people are unable to fly our airlines rack up huge losses. Not content with destroying the economy our most revered Finance Minister has warned suspected service tax evaders of severe reprisals. That is why no one knows how much black money is floating around.