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In India all pay taxes

Posted on September 4, 2007 by Vincent Augustine D'Souza

Many people say in India only 1% of people pay taxes. They think only of Income Tax. In India all pay taxes. There are many direct and indirect taxes. Income Tax is one of the direct taxes.
Service Tax, VAT, Sales Tax etc cover all people. People pay them directly or indirectly. Telephone users pay Service Tax. Anything that is bought has VAT or Sales Tax component in it.
When people go to see films they pay Entertainment Tax unless the film is tax free. Those who watch cable TV pay Entertainment Tax and Service Tax.
Sometimes tax is known by other names like duty, surcharge, cess, octroi, levy etc.
New taxes keep coming and their rate and scope increases. Fringe Benefit Tax, Cash withdrawal Tax and Securities Transaction Tax are some of them. Service Tax began on a few items @ 5%. Now it covers many items @ 12.36%. Finance Minister P. Chidambaram is a lawyer. Lawyers are exempt from Service Tax.
I dream of India without taxes. In Dubai there are no taxes. That is the reason of its prosperity. If India abolishes taxes it can prosper. For the country to run some expenses are necessary. Military is needed. Police is needed. Judiciary is needed. Executive and legislature perform important functions.
Many functions done by the government can be done away with. There is no need for the government to conduct film festivals. Money spent on higher education can be recovered from fees. There is no need to give money when awards are given. Users must be made to pay for the services they use. Subsidies must go.
India’s budgets must be surplus budgets. Inflation must be zero per cent.

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