Home Opinions Tax rates depend on how far we want to go as a Nation

Tax rates depend on how far we want to go as a Nation

Tax Rate Cuts

Every year when the Budget comes, people everywhere expect Tax Rate Cuts. They consider it a small part of “Tax Reforms”. Its an annual ritual, and it nearly always ends up in disappointment because the Govt is either seen reducing Direct Taxes and increasing Indirect Taxes, in other words, giving in one pocket and taking out of the other one, or the rate remains unchanged and government is simply seen adding news areas into taxation to increase Tax base.

India’s population is growing at a pace where we will soon beat China. Our need for employment, education, healthcare, need for expansionary fiscal policy, need for new robust infrastructure to last for next 50-100 years, need for more powerful armed forces to maintain dominance over wider geography, including land and maritime areas, and our need to sustain natural resources and agriculture to cater to burgeoning population, all are on the rise. Every single item on this bucket list needs serious money to be invested even if they are undertaken in a PPP mode by the government.

- Ad - - article resumes -

Yet, for some strange reason, people expect Tax Rate Cuts. Why? Because last year or last two years government collected more tax than usual. Why do we want the government to squander it away on us? In any case, these taxes were collected from Corporates or high income groups, not middle class.

Indians want to be a super power, but we do not want to invest in Super Power India. We want the government to finance it, but we do not want the government to have any source of rich income. We don’t want government to run its own PSUs. We only celebrate disinvestment. We also want government to cut the tax rates. Well, sirs, how do we settle this paradox?

Modi Government’s Perspective

Though initial utterances have been made again and again, yet, somehow a key message from the Modi Government has not percolated down enough for everyone to have a top of the mind recall.

If you will think carefully, in the initial years, Narendra Modi and Amit Shah spoke in terms of 25 years or 50 years. Many thought they are talking about their own rule at the Centre. That may be incidental. But that is not full justice to the grand leadership of Prime Minister Narendra Modi.

Narendra Modi has marked a change in generation of India’s Leadership. He is the first Prime Minister of India born post-Independence. It’s a fact he has himself emphasized on the eve of his swearing in ceremony in May 2014. A Leader who is conscious of this is not looking at what he can do for this nation in 5 years. He is looking at what he can do for this country for the next 50 years.

Smart City, Make in India, Bullet Train, Indo-Pacific Domination, Direct Transfer of Benefits, National Identity Card, Train the Trainers, Agricultural programs like Soil Health Card, focus on Agriculture Yield, integration of North-East and tapping Human and Natural Resources in that region, all are part of preparing today’s India for the next 50 years.

The Prime Minister is calling this a New India. He has re-emphasized this New India Vision in World Economic Forum at Davos too. His Ministers throughout this period are emphasizing on New India. But message is yet to reach the bottom of the pyramid.

Invest in New India

If we want to see this New India to fly out of the paper into the real world, it will need real money and real execution. This real money comes from our Taxes. And very few pay taxes in this country. Till the Direct-Tax Base of India remains at a mere 4% or so, it is unreasonable to expect Tax Cuts. Question people have to ask is if government is doing anything to increase Tax Base of India. GST and linking Aadhar Card to PAN is indeed an effort in that direction. Tax terrorism has to go down, Tax base has to go up and Tax rates, well, depends on how far we want to go as a nation.

Help Opindia Reach Every Indian. Share This Post
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.

Big Story

The International Court of Justice (ICJ) is expected to declare its verdict on July 17 in the case relating to Indian national Kulbhushan Jadhav. 

2019 World Cup Is Here!

Catch the latest on Cricket World Cup as it unfolds, special coverage by Opindia

Proud to be a brand - Made in India?
Now, Advertise on Opindia

Interview: Former RAW officer makes further shocking revelations about Hamid Ansari after alleging that he endangered lives of RAW officers in Iran

In this exclusive interview, Former RAW (Research and Analysis Wing) officer NK Sood makes further revelations about his time in Iran, Hamid Ansari and the vilified scientist Nambi Narayanan

Prime Minister Modi, Hindus are under siege, and now is the right time to speak up

PM Modi will still win elections due to sheer inertia and the pathetic state of the country's opposition but the faith that he commands will take a hit and even if it's among a small section of the support base, it would be a travesty
Tiranga TV boots its employees: Here is why they don't deserve any sympathy

I am a journalist and here is why I have absolutely no sympathy for the ones who joined Tiranga TV

News emerged last night that bouncers had been sent to the offices of Tiranga TV as the employees were holding a silent protest in the premises.
Supreme court judgements - regional languages

Here are 7 bizarre judgments by the Indian Judiciary that highlight the need for urgent reforms

It's not the first time that the rather bizarre tendencies of the Indian Judiciary have been on display. In this article, we revisit some of them.

Aspiring model Khushi Parihar murdered over ‘friendship with other men’, live-in partner Ashraf Sheikh arrested

Aspiring model Khushi Parihar was found murdered with her head and face smashed on Saturday morning at Chatarpur farms, around 50 KMs away from the Nagpur city, her live-in partner Ashraf Sheikh has been arrested
Karan Thapar tried to impede the construction of the RTR flyover

New RTR flyover finally opens in Delhi: Read how inordinate delays were caused by ‘influential residents’ like Karan Thapar

Prominent journalist Karan Thapar had written a letter to LG opposing the construction of RTR flyover claiming it could become the "matter of life and death"

Barkha Dutt terms Kapil Sibal a ‘Mallya’ for not paying salaries to Tiranga TV employees while enjoying in London

Barkha Dutt slams Kapil Sibal for sacking employees without due compensation, says the Sibals abused the female staffers

Court asks Ranchi woman to distribute copies of Quran while granting bail over her Facebook post over Tabrez Ansari’s death

A Ranchi Court granted conditional bail to Richa Bharti who is accused of 'hurting religious sentiments' of Muslim community over a Facebook post. She has been asked to distribute copies of the Quran.

Jharkhand: Hindu organisations allege bias as girl is arrested for Facebook post on Tabrez Ansari death based on FIR by Islamia committee

Acting on a complaint by the Anjuman Islamia Committee in Pithoria district, Ranchi, over a Facebook post on the Tabrez Ansari death, the Jharkhand police have today arrested a girl named Richa Bharti.

Conversion at Karnataka High Court? Islamic proselytising organisation distributed Quran among judges and advocates

Salaam Centre engages in 'Dawah' or the Islamic practice of converting non-Muslims to Muslim.
Subscribe to Day's Top Stories
- Advertisment -

Latest articles

Connect with us

Help Opindia Reach Every Indian. Share This Post