just add up and monetize all the perks that the rotten mps and mlas get; stop this rot and the country may become liveable.add to this the expenses on security of every rotten so called vip and add the savings.
Law makers are planning to introduce GST from the last 5 years and are introducing the same in the coming year. They themselves have taken 5 years to understand the GST and still in the process. Can they give another 5 years to the public to understand the same, before the same is enforced.
Instead of raising the tax on general public, govt should reduce their spending significantly. They should slash the pay of their (ever non performing) Govt employees who by the way use 80% of govt revenue. That would ease a lot of burden on public.
Right now VAT on essential items is zero or 5% on essential items. This new rate of 12 % will be too high. This will lead to inflation and will lead to rise in corruption in salex tax department. The government should keep zero rate on essential items.
The tax rates are very high. Public wud be confortable with 12%, 10% and 5% for Goods, Services and Essentials. Please raise voice for these rates, otherwise have more inflation. Support these rates from experienced VAT practioner.
Lot of people think most people pay no tax but it is only the income tax they don't pay but these kind of stealth tax is paid by every one.
In way it is completely unfair that a poor, middle class and and the rich (per say) pay the same GST.
I think we need to make the people who earn more pay their fair share in income tax (the net needs to be widened) as the middle/lower middle class pay bigger percent of their earnings as tax.
Lower GST will reduce price and increase consumption there by help the economy, the higher GST stifles growth....
No. I am not a socialist of communist but thought this system is little unfair...
Re: Stealth tax
by DL Narayan on Jul 21, 2010 09:04 PM
Heard of indirect taxation? When people cheat on direct taxes like income tax, wealth tax, customs duties, etc, then the Govt recourses to indirect taxes to meet its expenditure. If the rich pay their taxes, the poor will be spared. As simple as that.
Re: Stealth tax
by Vishwanathan Anand on Jul 21, 2010 09:20 PM
agree with you Jagan, the system is indeed unfair.... but the govt. knows this and thats why we have PDS - public distribution system through which the poor people get essential items at a much lower rate. At concept level, this is good but unfortunately the corruption network eats into the bread of poor people... u and i end up paying both the direct as well as indirect taxes thereby becoming the biggest losers to the corrupt system
Re: Re: Stealth tax
by jeet choudhury on Jul 21, 2010 09:51 PM
A poor person consumes a greater share of his income as compared to a rich person. The rich person saves a greater percentage than the poor. Therfore the poor have to pay a higher tax in proportion to their income than rich
Re: GOVT PRIORITIES
by Manoj Mehta on Jul 21, 2010 09:50 PM
I would put politician as the 1st problem. Once they are removed evrything else will be solved within few years !!
Initially it will be painful for at least 2-3 yrs before it gets streamlines. Seeing the current inflation, Aam Aadmi is in for more trouble in the coming years
