Friday, April 01, 2016

Why is our government hostile to taxpayers?

In a chilling letter, reminiscent of brutal feudal barons of yore, the Revenue Secretary in the Finance Ministry has asked the Chairman of the Central Board of Direct Taxes, Atulesh Jindal to explain the " laxity shown " by field officers in collecting direct, or income, taxes. " The CBDT requested for reduction in BE target which was done. In spite of that it now appears to me that RE target may also not be achieved. If that happens, Board and field functionaries will have to explain why it happened. Responsibility will also have to be fixed," he wrote. Is he asking tax officers to beat up citizens to extract more taxes? What does 'BE' stand for? Blood extraction? Perhaps, His Excellency is worried about financing the humongous jump in salaries of non-productive civil servants by the Seventh Pay Commission. To intimidate citizens it has been decided that anyone earning more than Rs 5 million in a year will have to declare his net worth. Why? If anyone has some property lying around it could be worth Rs hundred million. Is that a crime? He would be paying property tax on it anyway. Even 2 years after the general election in 2014, 105 Lok Sabha MPs, about 20%, are yet to declare their assets, which is supposed to be mandatory before voting takes place. One rule for them and one rule for us, what? Telangana, a state already loaded with a debt of Rs 1.3 trillion, is seeking bank loans to increase salaries of MLAs by 400%. The Delhi Government, formed by the Aam Aadmi Party, which translates to a party for 'ordinary people', has the honor of being first off the block. The Bihari government of Mr Nitish Kumar distributed gifts to MLAs but has no money to pay teachers. Apparently this is for thanksgiving, which is only right because we, the people, are the turkeys. Taxpayers have been ordered to file their total income from interest earned from savings so that a few more rupees maybe wrung out of them. Since banks deduct tax at 10%, if total interest earned exceeds Rs 10,000 in one financial year, it is not possible to hide such income. It is not that the CBDT has collected less tax but it has collected way more than we are supposed to pay, because of the pernicious Tax Deduction at Source, or TDS, policy followed by our government, because it has had to refund Rs 650 billion to taxpayers already. It is such waste of time and money that it beggars belief. Perhaps, the esteemed Secretary has not accounted for the fact that people are paying less tax because those of us who do not work for the government have become poorer because of high inflation and very high indirect taxes. This is reflected in the fact that people are saving less. And if we save less we earn less interest. It is definitely not a government of or by the people, it is not even a government for the people. Isn't it time to stop imitating the British? Be Indian.

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