Cut taxes to create more wealth. More wealth means more taxes.

Seems that Direct To Home, or DTH, companies have combined losses of Rs 180 billion. They have already invested Rs 280 billion and have been ordered to convert to fully digital service, costing another Rs 100 billion. Their average earning per user, or ARPU, is $3-4 per month, whereas in the US the ARPU per month is $70-100 and in Malaysia it is $25-30 per month. Even with such meager numbers they have to pay 10% of gross revenue as licence fees, which attracts a service tax of 14%, and entertainment tax according to whims of state governments. Thus 34% of their gross revenue is sucked away by governments. Why we have to pay service tax on the licence fee, which is itself a tax on us, is a mystery? Perhaps, lots of money is needed for politicians to go on ' study tours ' to exotic parts of the world as the UP MLAs did last year when they went to Europe, UAE and Turkey but Karnataka MLAs studied much harder when they went to at least 5 countries. We presume each one had a ' companion ' with him, to help him concentrate. With monotonous regularity we are told that India has to widen the tax base, which means direct taxes. An economic survey last year reported that our tax/GDP ratio is only 9%, a quarter of that in the OECD countries. Only 3%, that is 35 million out of 1250 million people, in India pay income tax, compared to 45% of the population in the US. Why, because the US is a rich country and people have more income. So, the solution is simple - to ' widen ' the tax base make people richer. How will people become more wealthy? By creating more jobs, paying good salaries. Companies will hire more people only if there is a demand for their goods or services and, in a poor country like India, demand is directly linked to the price of any product. Thus extortionate taxes raise prices, cut demand, reduce the number of jobs, which reduces the tax base. Service tax is now the highest revenue earner for the government. The recent auction of telecom spectrum makes Indian airwaves among the costliest in the world, which will result in either higher charges for customers or lower profits for companies. Delhi airport is 230% more expensive than Dubai, which has become a huge hub for Indians flying abroad, and taxes on airlines are holding back our aviation sector. It is therefore absolutely urgent for the Goods and Services Tax bill to become law as soon as possible. By combining all taxes it will reduce transaction cost and increase all India trade. There is no time to be lost. The rupee is falling as foreign funds are selling out on Indian stocks, global oil prices are rising and rising yields on government bonds means the the RBI will be unable to cut interest rates. If people become richer they will refuse to be bribed with handouts. The Congress, the commies and NGOs will lose out. They will therefore fight to the last to prevent India becoming wealthy.