It is February and we are moving from winter to summer and parliament is busy with budget...Today after a long time I was watching the Doordashan channel for the budget 2010...It is so pathetic to see our politicians discuss matters of high concern in front of millions in such a manner (the way they fight)...anyways...as long the people are silent, it is going to remain the same...and we are going to remain silent for some more decades to come.
Why do we pay so much.........
One of the primary reason I though was interesting was because of "The percentage of people paying tax"...well I was wondering...why the hell is this a reason.....come on....I am paying tax....all people around me are paying tax...my dad was paying tax...people around him payed tax....this data must be wrong....but the facts are as follows
Out of India's population of a billion people only 20 million pay tax, that is just 2%.
Income earned from farms in India, for example, is exempt from income tax. A large number of rich farmers who earn much more than salaried employees in cities, get away with paying no tax at all.
On top of it, the tax is not paid faithfully from the high income sections of society - doctors, lawyers, designers - and other independent, self-employed professionals whose tax is not deducted at source.
The matter is further complicated by the fact that the government offers various rebates to taxpayers who invest in a range of insurance and savings schemes, housing loans and equity and mutual funds.
The amount India collects in income tax has risen to more than one trillion rupees ($22bn) today.
Income tax rates in India have come down over the years - from a peak of 60% 25 years ago.
But rates remain among the most irrational and highest in the world, critics say...
Coming to the Petrol Rates, the prices are high because we pay approximately 52 % tax on petrol. (duties, taxes like customs, excise, sales tax, VAT, dealer commission) and 31 per cent on diesel. It is too high comparing income that we get against the one in developed countries.
I am not sure, what these politicians are discussing. I feel a lot of economics in India must be revisited...A simple math tells that the government should expand and widen the tax net. It should also formulate some mechanism where the big fish too pay taxes promptly instead of squeezing the medium fish (I am not considering the small fish)...For this all the parties should sit and come at a common decision rather thinking on vote bank and blame games...
In the current context, however i would rather be a rich poor rather than a software engineer who works for more than 16 hrs and end up paying more than X percent in tax. The same analogy can be further applied on other commodities too.
Some more interesting information
1 barrel = 42 US gallons = 158.99 litres. Assuming we buy at 74 $ / Barrel. i.e. Basic Price is 21.87. Then the break up is as following-
A Total of Rs 51.84. So for a Rs 22 liter petrol at pumps we people pay Rs 30 tax extra. Now I know, why the middle class people are like a JAM between BREAD. Happy reading..
Disclaimer: The Information is based on information shared in various articles that I found searching @ google. Only the thought process is mine.
Anyways....as I watched the budget session, I could not understand many jargons. The only thing that was interesting was their fights. As i was listening to the conversion, I told to myself "ENOUGH...Let me not listen to what i do not understand". Common things spoken were the price rice in common commodities. Now i thought, why the price was so high when the production was good enough in many (if not all) and thus started doing a Digg.
Let us now take the price of petrol. The average price of petrol in India is around Rs 48.24 per Ltr. Many people in Bangalore would now feel that the information is wrong as that is not what I/You pay...In Bangalore avg price is around rs 52/lt (at peak it was around Rs 58)...That is Rs 4 more...The Highest petrol price is in Hyderabad However. In US, the petrol price is around rs 16.62/lt...OOPS...i.e. 62 % more than India..
Why do we pay so much.........
One of the primary reason I though was interesting was because of "The percentage of people paying tax"...well I was wondering...why the hell is this a reason.....come on....I am paying tax....all people around me are paying tax...my dad was paying tax...people around him payed tax....this data must be wrong....but the facts are as follows
Out of India's population of a billion people only 20 million pay tax, that is just 2%.
Income earned from farms in India, for example, is exempt from income tax. A large number of rich farmers who earn much more than salaried employees in cities, get away with paying no tax at all.
On top of it, the tax is not paid faithfully from the high income sections of society - doctors, lawyers, designers - and other independent, self-employed professionals whose tax is not deducted at source.
The matter is further complicated by the fact that the government offers various rebates to taxpayers who invest in a range of insurance and savings schemes, housing loans and equity and mutual funds.
The amount India collects in income tax has risen to more than one trillion rupees ($22bn) today.
Income tax rates in India have come down over the years - from a peak of 60% 25 years ago.
But rates remain among the most irrational and highest in the world, critics say...
Coming to the Petrol Rates, the prices are high because we pay approximately 52 % tax on petrol. (duties, taxes like customs, excise, sales tax, VAT, dealer commission) and 31 per cent on diesel. It is too high comparing income that we get against the one in developed countries.
I am not sure, what these politicians are discussing. I feel a lot of economics in India must be revisited...A simple math tells that the government should expand and widen the tax net. It should also formulate some mechanism where the big fish too pay taxes promptly instead of squeezing the medium fish (I am not considering the small fish)...For this all the parties should sit and come at a common decision rather thinking on vote bank and blame games...
In the current context, however i would rather be a rich poor rather than a software engineer who works for more than 16 hrs and end up paying more than X percent in tax. The same analogy can be further applied on other commodities too.
Some more interesting information
1 barrel = 42 US gallons = 158.99 litres. Assuming we buy at 74 $ / Barrel. i.e. Basic Price is 21.87. Then the break up is as following-
A Total of Rs 51.84. So for a Rs 22 liter petrol at pumps we people pay Rs 30 tax extra. Now I know, why the middle class people are like a JAM between BREAD. Happy reading..
Disclaimer: The Information is based on information shared in various articles that I found searching @ google. Only the thought process is mine.
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