Comparing tax ratios between countries that are dis-similar doesn't make sense.
By paying higher taxes, in many western countries: - 1. people expect good, fair and speedy justice system 2. access to decent Healthcare 3. access to decent education 4. Un-employment / disability benefits and more
So tax ratios only tell a small part of the story.
The point is that any citizen would not mind paying more taxes, if they have faith that their money is going to be well spent. Do we have that assurance from any government in India? Is the Govt. committed to improving the standard of living for every indian? Absolutely not.
In India, we elect politician not to lead us...by electing politicians, we just give a licence as to who can swindle us.
This is not the time to talk tax ratios...this is the time to talk about accountability.
Well, if the GDP ratio indicates that indians are undertaxed, then it means that politicians are earning less from the taxes. Increase in taxes will directly bulge the politicians pocket.
Even with the existing tax earnings, the government is unable to provide proper public facilites and reforms. There should be reforms brought about in the government first rather making the serviced indians life more miserable by showing that indians are undertaxed.
Dear sir / Madam, When India don't have capacity to earn more, than how they will pay more tax ? In current tax structure also, it is very difficult for employed people to save from their earning, no mater how simple life we spent. If we earn more we are ready to pay more tax and when in India where we are already under paid, then taxation should also be low. Regards Debjani Guha
This is with reference "Should Indian pay more tax" by director, National Institute of Public Finance and Policy on Feb 12, 2004. I would like to raise following Issues: It may be correct that Indians pay less tax, as compared to per Capita Income. But will it not be useful to do some cost benefit analysis of the taxes paid and benefit received. You will agree to the fact that public spending & social benefits offered to people in Europe and America are much higher. I live in Gurgaon where all MNC's have offices. Here we do not have state electricity supply in our Housing society, which is one of the costliest buildings in the area. We all are dependent on Gensets (24 hrs). There is no public transport, no proper street lights, no sanitary services. The list can go on but what I want to say is that after paying all the taxes also, what we are getting is big ZERO. Most of us pay for our medical bills because we do not have good government hospitals. Secondly, we have to see what % of population in other countries pay tax. I suppose it would be much higher, as compared to India, so we have to increase our tax net. Rich farming community should be included in this net.
The analysis is a bit way above my average Joe head for me to understand and appreciate. The only fact I'd like to point out is that, for salaried characters like me, there is no question of underpayment of taxes. Every paise I earn is acccounted for and tax deducted at source, unless I manage to make some savings, which will be returned to me with interest years from now, instead of when I need it. The only question I'd like to raise is how effectively is business taxation implemented, especially for shops and establishments which do not bill for almost anything that they buy and sell. I do not see small electronics and so called "duty paid" shops billing for anything they sell, with little or no guarantee. It's loopholes like these which have to be plugged, instead of drowning one in hitech hifunda analysis.
Although the tax to GDP ratio maybe awkward, the amount of money middle class and upper middle class salaried individuals shell out as tax far exceeds the amount of money spent as tax in most countries. Especially developing countries, and if we weren't to spend like a big country we wouldn't be where we are.
The focus now needs to be shifted to people's needs. Rather than a mission to Moon in 2020 we should get an effective irrigation system; make sweeping tax reforms which make everyone pay some portion of their incomes; rationalise development (begin developing newer cities rather than putting money in dying cities like Mumbai and Delhi). Create feasible alternative energy sources etc.
The moon mission should be pushed back by 30 years or else it will push the rest of India back by 30 years.
There are people in this country who own money that can be measured not in terms of Millions, but in terms of Tonnes, hence the correct arguement should be: More Indians Should Pay Taxes
